Before starting your search for a new home, it is essential to get pre-approved first. A mortgage pre-approval is important for the following reasons:
1. No pre-approval, no accepted offer.
When a seller receives multiple offers from buyers, they will only take offers with a Mortgage Pre-Approval seriously. It proves that you have your financial house in order and actually fund the purchase of the home. Many sellers and real estate agents will not book showings without a Mortgage Pre-Approval – they are not a big fan of spending time with buyers who are “just looking”. Furthermore, many sellers will reject offers from buyers who do not provide a pre-approval letter.
2. Helps to define your home search.
A Mortgage Pre-Approval will keep your expectations more realistic than just guessing how much house you can afford. The pre-approval will keep your home search within a confined budget which will help narrow down your search results. There is no reason to look at homes that you will not be able to obtain financing for, a pre-approval is a necessary gut check.
3. Uncover hidden surprises.
Your mortgage lender will go through each item with you to make sure you aren’t missing anything. Running your credit report will uncover any hidden surprises that would prevent you from completing the loan process. The pre-approval process gives you a leg up over borrowers going straight to the mortgage underwriting process.
4. Responsible home financing.
All in all, there are many things you “should” do when buying a home – mortgage pre-approval is an important one. It shows maturity in your home buying process rather than just jumping right in. Take the time to ask Liberty Mortgage Lending as many questions as possible – we have helped many families in similar situations countless times before.