Why You Should Get Pre-Approved for a Mortgage

Many questions could arise in one’s mind when planning to buy a home. Among those questions, a popular one is whether you should get a mortgage pre-approval or not. In our experience, the answer is always yes. It lets the sellers know that you are serious as a buyer, and shows the real estate agents how valuable your time is.

During the pre-approval process, a loan officer goes through your finances to determine how much you can borrow, what your interest rate will be, and the amount you will be able to pay per month. After the credit check has been approved, you will be given a pre-approval letter which you can show to the sellers.

We at Nextburb always recommend you get pre-approved for a mortgage before you begin your house search. Whether you’re looking for a new neighborhood in New Jersey, Massachusetts, or wondering how to compare different towns and neighborhoods, our experts are here to help you with every step of the way.

Benefits of Getting a Mortgage Pre-approval

So, what are the advantages of getting a mortgage pre-approval? Why is it considered necessary? Let us tell you the reasons why:

Helps You Set a Budget

What can be more disappointing than choosing a house and realizing it’s outside your budget, right? A mortgage pre-approval enables you to determine how much you can afford, thereby allowing you to realistically narrow down your options and making the selection process way more efficient. By getting a mortgage pre-approval, you won’t find yourself looking at homes that are outside your affordability range.

Enables You to Negotiate

Sellers know that a buyer means business when they get a mortgage pre-approval, and this increases your chances of bargaining and negotiations. Since your seriousness is evident to a seller beforehand, they are more likely to agree to your terms, be it in terms of lowering the price a little or making repairs and so on.

Shortens the Closing Time

Closing on a house becomes easier when a mortgage pre-approval is involved. As all the financing is taken care of beforehand, you as a buyer can easily move on to the next steps and get the keys to your new home much sooner than expected.

Adds Weight to Your Offer

Imagine this: There are two offers in front of a seller and they’re wondering whom to choose. Chances are they will go for someone whose finances and intentions seem stronger, is it not? Having a mortgage pre-approval gives you this upper hand over the other buyers, as a seller is most likely to go with a buyer whose financial situation has been looked into by a professional.