The Importance of Mortgage Pre-Approval

The Importance of Mortgage Pre-Approval

Buying a house is a complicated process that can take months to complete. In fact, it takes an average of 50 days to close on a house even after you have a contract.

One thing that can speed up the home buying process is to hire a real estate agent and to get a mortgage pre-approval before looking for homes to buy.

Do you want to learn more about the importance of mortgage pre-approval? Keep reading these tips to learn how to get a mortgage and why you should consider getting pre-approved for your mortgage.

Helps With a Home Search

First and foremost, getting an approved mortgage helps you understand your budget and will make the home search go more smoothly. When you get pre-approved for a mortgage, you will have a close estimate for the approval amount.

This will help you identify your price range when it comes to searching for a home and it will help you stick to your budget.

With a mortgage pre-approval, you can easily filter through homes and you will not waste any time looking at homes that you will not be able to afford. If you are looking for properties in Granbury, TX, you can search for homes based on your price range.

Speeds Up the Closing Process

As was mentioned before, it takes over a month to close on a house after you have a contract.

However, there are other things that can slow down the closing process. For example, if you were not pre-approved, you may have to jump through hoops to get the financing for your home.

Since your mortgage will already be approved, you will not have to worry about this step in the closing process and you will be able to move into your home faster!

When you do not have to secure financing, you can move on to the next steps of the buying process before moving into your new home, like appraisals and home inspections. If a seller is trying to close quickly on their home, this will make you a great option for them.

Offers Credibility

Next, mortgage pre-approval is an easy way to boost your credibility as a buyer. In a seller’s market, it can be difficult to find a home, especially because there will be multiple offers on each house.

However, getting a mortgage pre-approval is an easy way to show sellers that you are serious about buying their home. It proves that you have the financial means to buy their home and it shows them that there will not be any hold-ups when it comes to getting your mortgage.

It is important that you show that you are a credible buyer if you want to stand out from other potential buyers.

Makes You a More Attractive Buyer

Having mortgage pre-approvals also makes you a more attractive buyer for people selling their homes. As was mentioned before, it can be difficult to get a home in a seller’s market.

This is because there is a low housing inventory and more people looking for homes.

In these situations, you want to do anything you can to stand out from other potential buyers. If a seller is deciding between two buyers who have offered the same amount for their home, they will likely choose to go with the buyer that has mortgage pre-approval.

This is because pre-approval makes you a less risky choice and makes you the better choice for a seller, as it shows that your offer for their home will not fall through.

Locks in Interest Rates

Another great benefit of getting a pre-approved mortgage is that it can lock in your interest rates. Interest rates can significantly increase the final cost of your house, so finding a low interest rate is vital for many people to afford a house.

Interest rates are at a current low, so it is a great time to buy a home and to save money in the long run.

Because interest rates go up and down frequently, you want to have a signed purchase contract as quickly as possible. When you are pre-approved for your mortgage, you can lock in an interest rate that will help you save money over time.

Prevent Credit Surprises

Finally, getting pre-approved for your mortgage is an easy way to prevent credit surprises. Often, people who are looking for homes to buy wait until the last minute to get their financing.

If there are any issues with your credit, you will not have time to resolve these problems and you will lose out on the opportunity to buy a house.

Because it can be so difficult to find the perfect home in a seller’s market, you need to be ready to jump on a great opportunity as soon as it comes up. By getting pre-approved for your mortgage, you will not have any credit surprises that slow down the home-buying process.

Get Mortgage Pre-Approval Today

Getting mortgage approval is an essential step when you are looking to buy a home in Granbury. Finding help with realty in Granbury is an easy way to find the home of your dreams and to learn more about the mortgage pre-approval process.

Do you want to learn how to get approved for a mortgage and get help finding a new home? Granbury Realtors can help!

Contact our team of realtors today to learn more about the mortgage pre-approval process and to find the home of your dreams in Granbury!

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