The Value of Mortgage Pre-qualification
It is important to apply for a loan and obtain a mortgage pre-qualification letter before you begin your home search. Mortgage approval is generally the longest contingency to satisfy in a purchase contract; therefore, it’s in your best interest to do this as soon as possible. Lenders will base their decision on your complete loan application, employment verification, and data from all three credit reports.
Spend More Time Examining the Right Homes
By decreasing the inventory of homes to those that fit your parameters, you can allot more time to thinking about all the little nuances each home has to offer. Lots of home buyers never move past the price point when sorting out their preferences, but now you can devote your time to looking at the little things that matter to you most.
Gain Confidence & Avoid Disillusionment
When you find that perfect home, no one can take it away from you by telling you that you are not a qualified buyer. You can minimize anxiety and remove last-minute loan surprises that could disqualify you. You'll sleep better at night knowing that the home you selected is yours.
Increase Bargaining & Negotiating Power
Sellers will be more likely to immediately accept your offer because you are giving them the peace of mind that their home is sold. They can take their home off the market and place it into pending status with confidence.
Enjoy a Faster Closing Period
The lender can speed up the entire processing procedure since you have already received a pre-approval letter. Appraisals can be ordered immediately. It's possible to shorten a 30-day closing to two or three weeks, which comes in handy if a seller needs to quickly move and can't decide which offer to accept. Your offer will move to the front if you can accomplish the seller's need to close quickly.