Obtaining a mortgage pre-approval is one of the first (and most important) steps you should take when purchasing a home. A mortgage pre-approval shows sellers you're serious and will help your offer stand out in a crowd. It informs real estate agents that your time is valuable and alerts lenders that you may be applying for a mortgage soon. Here are our top four reasons why obtaining a mortgage pre-approval should be your first step toward obtaining your dream home.

You’ll Know How Much You Can Borrow and Afford

Getting pre-approved gives you a clear picture of what you can afford, how much you can borrow, and your overall budget. It's easy to get caught up in the thrill of finding the perfect home, but it's also important to fall in love with one that makes financial sense. Speaking with a lender will provide you with a conditional green light on what you can afford and the price range you must adhere to.

It's important to note that lenders determine your eligibility based on your gross income, which is your income before taxes are deducted. Consider your daily, weekly, and monthly expenses when deciding on the best budget for you. 

You’ll Gain a Competitive Advantage When Making an Offer

We are currently in a seller's market. Because inventory is low, buyers must be as competitive as possible in order to secure the ideal home. Secure a mortgage pre-approval to put yourself ahead of other buyers. Sellers want to work with someone who is prepared, and a mortgage pre-approval gives sellers confidence that the deal will not be derailed by an unanticipated financial stumbling block.

You’ll Be Alerted to Potential Problems

When granting a pre-approval, a lender will typically look at your credit history, current gross income, assets, and debts. Paying off debts, saving for a larger down payment, and addressing inaccuracies on your credit report should all be completed before making an offer on a home. 

You’ll Accelerate the Home-Buying Process

When you're ready to make an offer, a pre-approval allows you to move more quickly. When it comes to competing with other buyers for your dream home, a mortgage pre-approval gets you in the door.

Talk with a loan officer today about gaining an advantage in the housing market by obtaining a pre-approval loan.


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