Benefits of a Pre-Approved Mortgage

When you’re ready to consider buying a home make sure you visit your local lender or mortgage broker to arrange for a pre-approved mortgage. It’s an important first step with a number of key benefits.

Pre-approval can tell you exactly what you can comfortably afford and gives you the focus you need to find the right home for your budget.

It helps assure your real estate salesperson that you are serious about finding a home rather than just kicking the tires. Having a pre-approved mortgage provides your real estate salesperson with extra incentive to work hard for you toward finding your perfect home which translates into his or her time well spent.

If you’re competing with other buyers on the same property it can give you a leg up on the competition. Sellers are typically more likely to accept an offer from a buyer who has been pre-approved than a buyer who makes an offer conditional on arranging financing.

Finally, being preapproved can also ensure a faster closing since you do not have to wait for your lender to make a decision on approval after you’ve already selected a home and made an offer.