5 Mortgage Pre-Approval Benefits

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As a first time home buyer, one of the important first steps in the home buying process is to obtain mortgage pre-approval. This should happen before house hunting - in person or online. There are several advantages to getting pre-approved for your mortgage:

5 Mortgage Pre-Approval Benefits

1. Financially Solvent: Going through the mortgage loan pre-approval process, removes much of the guesswork and doubts as to whether or not you are financially capable of purchasing a home.
2. The Price is Right: By obtaining your mortgage pre-approval, you are better able to determine the price range of homes you can afford. There is nothing worse than falling in love with a home, only to discover that its out of your price range. Conversely, without mortgage loan pre-approval, you could possibly short change yourself, and end up missing out on a home that you could qualify for.
3. Stronger Buyer: Having your loan pre-approval helps to portray you as a solid buyer, fully capable of satisfying all aspects of the purchase & sales contract. Sellers are more likely to accept offers from Buyers who are pre-approved for their loan. This is especially beneficial when you're involved in a multiple offer situation.
4. Greater Negotiation Ability: Buyers who have their mortgage loan pre-approval can typically negotiate better terms and pricing than Buyers who are not pre-approved.
5. Fastrack to Closing: Once you are under contract, your mortgage loan pre-approval can actually help to speed up the closing process, since much of your financial information is already in the lender's system.

More and more of today's sellers and their listing agents are requiring that any offers being submitted should be accompanied by a mortgage pre-approval letter from the buyer's lender. Make sure that you're fully prepared for your house hunting adventure by obtaining a mortgage loan pre-approval letter from your mortgage lender before you shop!

Download "The Essential Guide to Buying Your First Home" at the button below to learn more about the home buying process. The free guide covers FICO scores, down payments and more. 

(number 5: Flickr user Andreas Cappell)