Whether or not you’re in the market for a new home, you’ve probably heard the phrase, “Get pre-approved.” Perhaps it was through a radio or TV ad, on social media or from your friends or family.
What you should know is what being pre-approved means in the homebuying process, and how it can make you stand out in today’s crowded buyer’s market.
What is a Pre-Approval?
To get a mortgage loan, you need to be pre-approved by a lender. This means that your lender will need to collect certain documentation, such as bank statements and W2s, to verify your income and determine your ability to repay the loan.
Why is it Important?
Getting a pre-approval from a trusted lender is a powerful tool for homebuyers for many reasons, and is recommended before you even begin home shopping so that you may:
- Know your Budget
- Gain Peace of Mind
- Get Ahead of your Competition
- Increase Buying Power
- Expedite your Closing
With a pre-approval, your Realtor will know you’re a serious buyer and understand your budget, helping narrow your home search to homes that are a right match for you. It can save you from the heartache of falling in love with a home you can’t afford, while letting your realtor know that you’re ready and able to make an offer on a home anytime, anywhere.
For the sellers, a pre-approval makes you an attractive buyer as it shows sellers that you are financially capable of purchasing their home, giving them the peach-of-mind that your offer will stand.
A pre-approval also expedites the closing process which means smoother, stress-free closings and getting you into your new home that much sooner.
Ultimately, getting pre-approved is a smart move if you’re looking to buy a home anytime soon. To get your free pre-approval, reach out to your local loan expert, Dave Leeder with Inlanta Mortgage – Madison! Rates are still at historic lows making now a great time to purchase your dream home in 2020!