Be honest. Have you started looking at homes online or in person? If you have, it’s already past time to get pre-approved. Here’s why.
If buying a home is on your radar – even if it’s more of a someday plan than a right now plan – you don’t want to wait to find out what you can afford and what lenders are willing to loan you.
No matter what you’ve heard, pre-approval isn’t about commitment. It’s about clarity.
Here are the two big ways pre-approval sets you up for success.
You Know Your Numbers Up Front
During the pre-approval process, a lender will walk through your finances and tell you what you can borrow based on your income, debts, credit score, and more. Once you have that number, your search becomes a lot more focused.
With a mortgage pre-approval, you know what you can borrow, so it’s easier to figure out your ideal price point, and what you can actually afford. And that clarity is key.
Because if you just start browsing online or going to open houses just guessing at your price point, you run the risk of falling for a house that’s outside of your price range – and missing out on ones that are.
You want this number to be clearly defined before your search. Here’s why.
You Can Move Quickly When You Find the One
This is how a lot of home searches go today. You scroll through listings just to see what’s out there, and then it happens. You fall in love with something you’ve seen online.
If you’re already pre-approved? You’re probably in great shape.
But if you’re not…
Instead of being able to quickly make an offer, you have to scramble to get a lender, gather the financial documents, and then submit the necessary pre-approval paperwork first. And while you’re waiting to hear back from your lender, someone else who’s more prepared could beat you to the house. As Bankrate explains
“The best time to get a mortgage preapproval is before you start looking for a home. If you find a home you love but don’t have a preapproval in hand, you likely won’t have time to get preapproved before you need to make an offer . . .”
And that’s avoidable, with the right prep.
While you can’t control when the right home will show up, you can be ready for it. Think of it like showing up to the starting line with your shoes tied and your warm-up done – while everyone else is still looking for parking.
It’s not about rushing your timeline. It’s about removing the delay between finding the right home and being able to move on it.
One Thing You Need To Know About Pre-Approvals
Speaking of timing, pre-approvals do have an expiration date. So, be sure to ask your lender how long it’s good for. The Mortgage Reports explains:
“Mortgage preapproval letters are typically valid for anywhere from 30 to 90 days. However, a preapproval can be updated and extended if the lender re-checks your information.”
Doing the right prep and knowing this information can make the whole process a lot smoother.
You don’t have to be ready to buy to be ready to buy.
Getting pre-approved doesn’t mean you’re committing to buy right now. It just means you’ve taken a step to understand your numbers. And when a home catches your attention, you’re prepped and good to go.
Bottom Line
So, ask yourself this: if your perfect home popped up tomorrow, would you be ready to make a move?
If the answer is no and you’re thinking about buying, it may be time to get pre-approved. You don’t feel behind before your search even officially kicks off.
If you don’t already have a lender, just let us know. We can connect you with several trusted professionals who have worked with many of our buyers and consistently delivered excellent service.
You can always find us at 508-388-1994 (Mari and Hank) or 781-423-8662 (Colleen).
If you have buying on your mind, let’s talk soon…
Mari, Hank, and Colleen
Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.
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