The Benefits of Getting Pre-Approved for a Mortgage

Shopping for a new home can be an exciting and overwhelming experience. But if you’re serious about buying a home, there’s one important step that you must take before you start house hunting: getting preapproved for a mortgage. Realtors will often tell buyers to get preapproved before looking at homes, but why? Let me tell you why it's essential by sharing my own story. 

When my wife and I started searching for our first home, we figured we would look around to get an idea of what our budget should be. We thought we could just pick out the perfect house and figure out the financing later. After all, who doesn't want their dream home?  Little did we know that this was the worst approach possible. We were looking at homes way above our budget and were heartbroken when we couldn’t buy our dream home because it was outside of our means. We were also disappointed with ourselves because had we done research beforehand, this situation could have been avoided. This was before I was in real estate, I had no idea why realtors pushed this part of the process.  I thought it was to vet their buyers, I was so wrong. 

That's when I realized how beneficial it is to get preapproved before you begin your home search. Getting approved isn't just a formality; it actually gives buyers several advantages that can save time and money in the long run. Knowing your budget ahead of time helps keep your expectations realistic - no more disappointment when you can't afford certain homes or neighborhoods! A preapproval letter also shows sellers that you are serious about purchasing and makes them more likely to accept your offer over someone else's without one. Preapproval also allows real estate agents to narrow down their search options to properties within your price range so they don't waste time showing houses that are too expensive or too small for your needs.  

Finally, getting preapproved lets buyers know exactly how much they can afford based on their current financial situation and credit score so they won't overextend themselves financially by buying a house beyond their means or taking out unnecessary loans with expensive interest rates. This puts buyers in control of the process instead of letting lenders dictate their terms and conditions. 

Buying a new home is no small feat; there are many different factors to consider during the process and it pays to plan ahead as much as possible. Getting preapproved is an essential step in any home buying journey as it helps set realistic expectations, shows sellers that you're serious about purchasing, narrows down search options, and puts buyers in control of their finances! Don’t let my story be yours – do some research ahead of time so you don’t end up disappointed like my wife and I did!  Reach out if you need some good recommendations for lenders or to understand the programs available to buyers.