SHOULD I GET PRE-APPROVED FOR A MORTGAGE? MOST DEFINITELY!!
Most mortgage lenders take the guesswork out of applying for a loan by figuring out for you the amount you can afford to borrow. Then, they give you a printed document stating the maximum mortgage amount you qualify for based on your particular finances and income.
Mortgage pre-approval establishes your price range and strengthens your buying position by letting the Seller know that you have already been approved for the loan. It can also ease time constraints once the purchase agreement is signed between Buyer and Seller.
Consider these Scenarios:
You're out looking at homes. Your Real Estate Agent never mentions that you should get pre-approved and just ballparks what you can afford. You find the perfect house and work out a deal with the Seller. Three weeks later, the lender informs you that the house is $10,000 over what you qualify for and does not approve your loan. You've given notice where you're renting and told all your friends about the great house you bought. The worst part is that you now have serious legal problems.
or
You and your REALTOR have been working diligently finding that "perfect" home. A new listing comes on the market that's priced right and has everything you've been looking for. You do an offer. Your REALTOR takes it to the listing REALTOR and is informed that two other offers are coming in and all offers will be presented simultaneously to the Seller. The other Buyer is pre-approved for his loan. Whose offer do you think the Seller will negotiate first??
Should You Get Pre-Approved for a Mortgage First??
Most Definitely!!
