Always Start Your Home Search with Preapproved Financing
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Today's real estate market moves swiftly. Often, buyers find they need to act quickly to avoid missing out on their perfect home. In today's market, sellers are receiving multiple offers, allowing them the luxury of choosing an offer that's to their exact liking. So, what can buyers do to increase their chances of enticing sellers with their offers?
The Benefits of Mortgage Preapproval
Preapproved financing gives buyers a significant edge over those whose competing offers do not have a mortgage preapproval letter.
For home sellers, an offer that's accompanied by a preapproval letter shows that the buyer is serious. The seller (and the seller's agent) sees that the buyer has done his or her homework and is ready to purchase the home as quickly and as smoothly as possible. When faced with two similar offers, the offer backed by mortgage preapproval is almost universally preferred.
For buyers, beginning a home search by getting preapproved for a mortgage provides even more benefits. Your preapproval gives you a firm budget to work with, saving you from the heartache of falling in love with a home that's outside your financial reach.
Additionally, having preapproved financing sets you on track for a smoother home purchase. Preapproved buyers close more quickly and are less likely to come up against unexpected delays or difficulties.
The process of buying a home is stressful and has many stages. Taking these steps in the proper order is the best way to minimize your stress.
How Much House Can You Afford?
Buying a home doesn't begin with looking at the area's real estate listings. It begins, as with most things, with financing. With a mortgage preapproval in hand, you'll know what you can afford. Much of the waiting involved in choosing and obtaining a loan will be behind you as you search for your perfect home. You'll still have a short wait when your actual loan goes through underwriting. However, as long as you don't make any changes to your financial status, the loan application process is much shorter if you've already been preapproved.
Best of all? By being preapproved when you make an offer on a home, you've given that offer its best chance to be accepted. In today's fast-paced real estate market, that's no small advantage.