Why should you get pre-approved BEFORE shopping?

As a potential homebuyer, house shopping can be both exciting and overwhelming. However, it is important to understand that getting pre-approved for a mortgage should be the first step in the homebuying process.

For buyers, pre-approval means that a lender has reviewed your financial information and has determined how much money they are willing to lend you for a home purchase. This information will give you a better idea of what you can afford and what type of homes you should be looking at. It also helps to speed up the homebuying process once you find your dream home, as you will already have a lender on board who is ready to fund your purchase.

For sellers, a pre-approved buyer looks serious and committed to the process. They know that the buyer has already gone through the process of getting pre-approved, which means they have already taken steps to secure financing for the purchase. This can be an attractive quality for sellers who want to make sure their potential buyer is financially able to complete the sale.

Getting pre-approved also helps you to avoid any surprises during the homebuying process. You will have a better understanding of what your monthly mortgage payments will be, which can help you to budget accordingly. Additionally, being pre-approved can help you to identify any potential issues that could prevent you from getting a mortgage, such as a low credit score or high debt-to-income ratio. This gives you an opportunity to address these issues before you start house shopping, which can save you time and frustration in the long run.

In conclusion, getting pre-approved for a mortgage is a crucial step in the homebuying process. It can give you a better idea of what you can afford, help you to avoid surprises, and make you look more attractive to sellers. If you're thinking about buying a home, take the time to get pre-approved before you start house shopping. It will make the process much smoother and more enjoyable.

If you're ready to talk with a local lender that I personally recommend, please reach out and let me know!