If buying a home is on your agenda this year, you may already be looking at real estate websites and watching for yard signs, hoping to find a great deal on your next home. You may have even attended open houses or called a real estate agent for more information on homes for sale in your area. While this type of careful shopping is certainly important, it is not all that you need to do in order to find the home that best fits your needs and your budget. Instead, consider starting the process of purchasing your next home by seeking out and getting approved for a low-interest, fixed rate home loan. It's the smart place to begin, and these three reasons will help you see why.
Seeking loan approval first helps home buyers hone in on the best price range for them
Looking for a home without having mortgage approval is like buying a car before you get a license to drive. The loan approval process is the best possible way for a prospective home buyer to hone in on the price range they can most comfortably afford to shop in and avoid the problems associated with looking at homes that may be too expensive for their overall housing budget. When applying for the loan, prospective home buyers can work closely with their lenders to find the price range that will keep their monthly housing costs at the most affordable level to ensure that home ownership is a positive experience for them.
Having loan approval before making an offer helps strengthen your offer and command the seller's attention
Prospective buyers who have loan approval can include proof of it when submitting an offer. Doing this removes any doubt sellers may have about the buyer's financial standing and ability to close on the home and gives them reason to seriously consider choosing the offer over one from a buyer who does not yet have loan approval.
Making loan approval the first priority offers buyers an opportunity to work through credit issues and secure the best possible terms and interest rates
Making an application and becoming approved for a home mortgage before looking for a home allows prospective buyers to make sure they have sufficient time and resources to deal with any unexpected credit or financial issues that might otherwise derail their attempts to purchase a home. In addition, buyers who get loan approval first have time to seek out the best possible loan terms and interest rates available, which can help them enjoy a lower monthly mortgage payment.
Whether it is paying off a forgotten debt or making sure there is sufficient savings for the down payment and closing costs, taking care of these matters before shopping for a home is sure to give buyers a better overall home buying and home ownership experience.Share