How a mortgage pre-approval can help you

Buying a home is one of the most exciting but also costly purchases you can make. To realize the dream of home ownership, many people take out a mortgage to purchase their home. This is where you borrow money from the bank or another lender and then pay the loan back with interest. You can be pre-approved for a loan, which is very beneficial in the home buying process and is an important step if you are ready to begin the search for your dream home. Getting pre-approved for a mortgage is an important step and can be the difference between making your dreams become a reality or not.

We will look at four ways pre-approval can help you in the buying process.

1. You know your affordability

By knowing precisely what you can afford, you are saving both your agent and yourself time and energy. Without pre-approval, you could be wasting time looking at properties that are not within your affordability range. You will also quickly realize whether your expectations and hopes for what you want in a home are realistic, and you can then plan accordingly. If you realize your expectations are not realistic, you can then decide to adjust your expectations or stall your purchase a little longer.

2. You narrow your search

Buying a home can be a daunting experience, and some people feel overwhelmed by it. Knowing your affordability makes you more focused in your search for a home. You will know what price bracket to look in and which neighborhoods may be out of your affordability bracket.

3. You increase your odds of closing a deal

If you find a property you like and want to purchase, remember that you may not be the only buyer interested. By being pre-approved, you put yourself a step ahead of those buyers who may be interested but have not yet been pre-approved for a home loan. Having pre-approval in hand shows potential sellers and agents that you are serious about buying and closing the deal and increases the odds of the deal landing in your favor.

4. You reduce the closing period

Securing financing is one of the first steps in the buying process and can take several months. By having your pre-approval ready to go, you are reducing the closing period substantially, which means you can move into your dream home sooner!