Mortgage Advice

7 Benefits of Getting Pre-Approved for a Mortgage Loan

March 20, 2014

We’ve said it before, and we’ll say it again. The first, and arguably most important, step in the home buying process is obtaining a letter of pre-approval. Before you even start searching for homes, you’ll want to make sure you have this powerful piece of paper in your hand. It will help make your home buying experience seamless and successful from start to finish. Here are seven reasons why you should get pre-approved for a mortgage loan:

  1. You’ll determine how much you’re eligible to borrow. By providing lenders with the documentation necessary for a pre-approval, they’ll be able to evaluate your ability to repay a mortgage loan, help you determine how much you’re eligible to borrow and provide advice regarding what price range you should aim to stay within.
  2. Realtors will see you as a serious buyer. By having gone through the steps needed to acquire a letter of pre-approval, and the stamp of approval from a mortgage lender, realtors will view you as a serious buyer. In fact, a letter of pre-approval is so important that some realtors will not work with you unless you have one.
  3. You’ll save time by looking at the right homes. When you know how much you’re eligible to borrow and what price range you’re looking to stay within, your real estate agent will be better prepared to help you find homes that contain the features you want and fit within your budget. This helps you spend more time looking at the right homes, and less time looking at the wrong ones.
  4. You’ll spend more time examining the right homes. By realistically limiting your price point and narrowing your search, you’ll be able to spend more time focusing the fine details of each house you visit. With more time to closely examine each property, you’ll be more likely to find a house that’s perfect for you.
  5. You’ll increase your bargaining and negotiating power. Even if you offer less than the asking price, sellers are more inclined to accept your offer because they know that you have been pre-approved and are capable of successfully closing the deal.
  6. Gain confidence and avoid disappointment. When you find the perfect home, the last thing you want is to have all of your hard work and time spent searching for houses fall through. By taking the time to get pre-approved, you can approach your home buying experience confidently, knowing that you can afford the homes you’re looking at and be comfortable placing an offer.
  7. Enjoy a faster closing period. Having a letter of pre-approval speeds up the entire lending process because the appraisal can be ordered immediately and your loan application can be processed without delay. According to home buying expert, Elizabeth Weintraub, it’s possible to shorten a 30-day closing to two or three weeks. This comes in handy if a seller needs to move quickly or can’t decide which offer to accept.

At Ross Mortgage, we take pre-approvals seriously. It’s not just another piece of paper, it’s a commitment to lend. To start the pre-approval process and take the next step in your journey to becoming a homeowner, give us a call at (800) 521-5362, or fill out the application form on our website.