Before you start looking for a home, you should get pre-qualified for a mortgage loan. Getting pre-qualified is one of the most important first steps to take in the mortgage process. When done, a lender can give you an idea of the mortgage amount for which you qualify. Here are four benefits of getting pre-qualified.
1. Shows You're A Serious Buyer
Getting pre-qualified first, shows your Realtor that you're a ready buyer, not just perusing properties and window-shopping. This is important because when your real estate agent knows that you're ready to take action she can begin prioritizing and setting things up just for you. She will move a lot quicker for you. The process is a simple one; you provide information on your credit, income, assets and debt and your lender will let you know the approximate loan amount you can expect. If you really want to get specific, go beyond pre-qualification and get pre-approved for a loan. Consult with our preferred partners, Christopher Long of Sierra Pacific Mortgage or Cindi Taylor with Big Valley Mortgage if you want to get started.
2. Saves You Time
When you know the loan amount you're approved for, this will save you tons of time in looking at homes within your price range. When pre-qualified, you can fine tune your search and find the best property that's within your budget. Plus, when you're pre-qualified, you won't get disappointed looking at homes that you know you won't end up buying.
3. Make Same-Day Offers
In some markets, inventory can be quite low and speed is the name of the game. Not that you want to rush into purchasing a home, but when you find one that you're absolutely in love with, you want to be able to snatch it up before anyone else does. Being pre-qualified means you can make a same-day offer and move forward with the loan process.
4. You Look More Attractive to Sellers
Oftentimes, you'll be competing with other buyers on the same home. Which offer is more appealing? The one that cannot be backed up by a lender or one that has? Make yourself look good in front of the seller, who can expect far less delays with you, a prepared buyer. Sellers are likely to prefer your offer over a buyer who is not pre-qualified, which gives you power.