Congratulations on deciding to purchase a home! The “preapproval” is the first step on this journey and there are a wide range of benefits you may not have even thought about.
First, it tells a seller that you are a serious buyer and they should consider the offer you submitted. Many sellers will refuse to show their home unless you’ve been pre-approved, let alone accept your offer to purchase. The preapproval is basically the key to get you in the door.
Beyond that, the preapproval tells you how much of a home you can purchase. You don’t want to look at $250,000 homes when you could be looking at $450,000 and vice versa. Also, you will get an idea of what your monthly payment will look like at these different price points.
In addition, most of us are not perfect and there are often issues that need to be corrected. The preapproval process will identify those and will give us an opportunity to work together to fix anything that needs to be addressed.
Everyone is curious what their credit report and credit scores look like, including me. This process allows us to review your credit report and discuss how your credit scores impact your interest rate. If there is room for improvement, we can discuss those steps as well. I have been able to provide directions on how to increase my client’s credit scores so they can save a ton of money on interest costs.
And last, but certainly not least, the preapproval process gives you an opportunity to explorer the various loan programs available to you and allow you to select the one that works best for your overall financial picture.
Make sure you complete the mortgage preapproval process today. You’ll be happy you did!