Top Reasons to Get Pre-Approved Before House Shopping
As a first time homebuyer, you may be unaware of the benefits associated with getting pre-approved for a mortgage. Your local Des Moines mortgage lender can go through your financial documentation and pre-approve you for a home loan. Having this process done can not only save you time but can also save you money.
To help, the Tyler Osby Team at FAIRWAY Independent Mortgage Corporation has created a list of the top 5 reasons to get pre-approved before house shopping.
- Saves Time:
Before you start shopping the market for a new home, it is important to get pre-approved for your Des Moines mortgage, so you know exactly what you can afford. Knowing your affordability can save you time because you will know what price range to shop in. This means you can only focus on homes you can afford, instead of wasting your time viewing houses outside your budget.
- More Credibility:
Getting pre-approved will give you more credibility when dealing with sellers because it shows you are serious about purchasing a home. This also tells the sellers that you are financially responsible and prepared for homeownership because your credit will have already been checked, and your documents verified.
- Negotiation:
Having more credibility means you will be able to negotiate for better deals. Sellers will know that they are not wasting their time with you if you are pre-approved, therefore, they will be more likely to give you a better price if you try to negotiate.
- Better Qualified:
Once you are pre-approved and start shopping the market for a new home, there is a chance that you and another family could put an offer down on the same house. If you are stuck in the middle of a bidding war, the seller will most likely choose someone who has been pre-approved, over someone who has not.
- More Options:
Most real estate agents will refuse to work with you if you have not been pre-approved for a mortgage. Working with a real estate agent can give you more options and access to a wider market then if you were to try and go through the buying process yourself. Therefore, it is in your best interest to get pre-approved.
If you are in the market for a new home and would like to obtain a mortgage in Des Moines, we highly recommend you get pre-approved first. Pre-approval has many added benefits such as more negotiation power and credibility. To get started on your pre-approval application, please contact the Tyler Osby Team at 515-257-6729.