New Homeowners Who Got Preapproved First
Go against the grain – get a preapproved mortgage before you start searching for a home. Most people start searching for a new home to buy start by looking at homes online – then they contact a real estate agent – then they look at their mortgage options. According to the National Association of Realtors, nearly 85% of all home buyers begin their home buying process online.
While it is common to start the home buying process with doing a home search first, the easier way to go is to have your preapproved mortgage in hand. We cover some of the benefits of this below.
- Having a preapproved mortgage before you start the home buying process tells you what kind of home price range you can shop for.
- Knowing your home price range lets you know what kind of monthly payment you will have.
- A preapproval letter from your mortgage company in your hand will help you in getting your purchase offer accepted when you find a home you want to buy.
- Going through the preapproval process will help you fix problems with your credit report ahead of time. The worse thing you want to have happen is to get your hopes up on a home and then not be able to buy it because there are problems with your credit report that you did not know about.
- Having a preapproval will allow you to confidently search for homes in your price range. It will also help you and your real estate agent save time by only looking at homes in your price range.
- With your home loan preapproved, you can lock in an interest rate with confidence once you have found the home you want to purchase.
- A preapproved mortgage tells everyone that you are serious about buying a home which hopefully leads the real estate agent and the home seller to work harder at helping you put your home purchase together.
Learn more about the steps to buying a home with this Homebuying Guide
.