Getting preapproved for a mortgage is an important part of the home buying process. While technically not required before you begin your home search, there are some key advantages to getting preapproval from a lender before you get too deep into the process.
Here are some of the main reasons why to consider getting preapproved for a mortgage:
Cost is one of the major factors you’ll be dealing with in finding a new home. A house is a significant investment and one of the biggest purchases you’re likely to make, so it’s crucial to understand your financial situation clearly early on.
Mortgage lenders will examine your finances, using things like credit history, investment account statements and debt-to-income ratio.
With this careful analysis of your financial situation, a mortgage preapproval can help you determine how much you can afford to spend on a house before you start looking. It will help you estimate how much of a down payment you can offer and how high an interest rate you can comfortably afford while paying back your mortgage.
The real estate market is constantly changing, both across the country and across your local area. Economic shifts can make a huge difference in the availability of homes for sale and their prices. It can also make a difference in how much competition you’ll have for the same property.
Getting mortgage preapproval will give you an advantage over other potential buyers because it will communicate to sellers that you’re financially qualified and less of a risk.
As long as you don’t make any major changes that could affect your financial status, having mortgage preapproval shows you have the financing to back you up. Sellers may be more likely to choose you over another buyer if they have the reassurance of your mortgage preapproval letter.
While the mortgage preapproval process itself might seem daunting and complicated, the benefits can certainly outweigh the inconvenience. Keep these advantages in mind when considering whether to get preapproved for a mortgage.
After a short stint as a litigation attorney, Femion joined Buyers Brokers Only, LLC in May 2009. His approach of not selling his clients on a particular property but, instead, helping them make educated decisions has resulted in a growing customer base, including repeat clients and an extensive network of referrals. Femion works diligently to help his clients get the property they want under the best possible terms while making the property-buying process as smooth and stress-free as possible.
Femion had a stellar 2021, helping dozens of clients reach their real estate goals. Individually, Femion exceeded $52 million in gross sales while maintaining his clients' exemplary reviews, making him the number one exclusive buyer broker in the country.
Attorney Michael Lord has recently joined Femion to form The Mezini Team. Together, the team will expand coverage of the Greater Boston real estate markets, decrease response time to client inquiries, and provide an overall more efficient service for their clients. Their team will work tirelessly to maintain the level of customer service that has made Femion the top exclusive buyer agent.
