5 Mortgage Pre-Approval Benefits
For first time home buyers, a major step in the process is receiving mortgage pre-approval. This step should happen before you actually start looking for a home. Here are five benefits of mortgage pre-approval.
1) You Can Easily Identify Bad Signs
Lenders are able to uncover many future problems during the mortgage pre-approval process. Perhaps your level of debt is higher than it should be compared to your income. It is also possible that your credit score may be too low. If these problems are caught early, there is more time to fix them. This will stop you from wasting your time looking at homes only to be denied.
2) You Have a Better Understanding of The Home Searching Process
Being pre approved helps you understand exactly how much the lender will lend you. In turn, you can begin to analyze your finances. You will know which homes to look at, and which homes to avoid.
3) You Can Start the Dialogue With Real Estate Agents
Most agents will only work with buyers who have a mortgage pre-approval letter. Due to a tough housing market, it is much more difficult to get approved for a home. Real estate agents want to make sure that you have been approved by a lender before they start working with you.
4) It is Easier to Attract the Attention of a Listing Agent
If you try to schedule an appointment to look at a home, the listing agent is probably going to ask your agent if you have been pre approved by a lender. Listing agents do not want to waste time on someone who may not get a loan. Being pre approved will cause listing agents to become more interested in you and your pursuit of a home.
5) It is Much Easier to Finish the Transaction
By being pre approved, lenders can speed up the closing process because they already know the current state of your finances.
Start the process at the button below. Talking to a mortgage consultant about mortgage pre-approval is a painless procedure. They will want income and debt information, and pull your credit score. It's not a ridiculously long process, and you'll soon be on your way to house hunting.
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