Buying a home is an exciting process. Not only are you choosing a house to make your own, you’re selecting a community to complement your lifestyle. Though searching for homes online and touring promising properties may give you butterflies, other aspects of the process can be stressful.
One simple way to cut down on your stress and improve your options as a homebuyer is to become pre-approved. The pre-approval process involves sitting down with a lender and reviewing your finances. The lender will look at your credit report, borrowing history, gross annual income, and any outstanding debt you may have. Then, they’ll determine how much money the bank is willing to loan you.
Obtaining a mortgage pre-approval from a lender will streamline your home-buying. Here are three reasons why.
It Helps Set Your Budget
Searching for a home is a time-consuming process. You may not be sure what you want just yet, so it’s likely that you’ll spend some time looking around online. However, if you’re not sure what you can afford you may be wasting time looking for something that’s out of your price range.
When you get pre-approved, the bank is letting you know exactly how much they’re willing to loan you. This makes setting a budget much easier, because the bank has told you what you can afford.
It Makes You More Competitive
Realtors and home-sellers love a pre-approval letter. It lets them know that you’re serious about buying a home, and have the funds to back up your offer. Home-sellers are more likely to accept your offer if you have that pre-approval because you seem more serious.
Plus, if a real estate agent knows what you want and can afford, they’re able to do a better job of finding you homes that you love within your budget.
It Will Alleviate the Stress
Home-buying can be stressful, there’s no way around it. But if you go in prepared with a pre-approval letter from the lender, you’re likely to have a more streamline experience. Without that pre-approval, you’ll spend longer looking for homes and your offers may not be taken as seriously.
Plus, the pre-approval will give you confidence as a buyer. You have the money to afford your dream home, as well as the paperwork to back it up.
Work With a Realtor You Can Count On
A good realtor can make all the difference in your home-buying process. If you have any questions about buying a home in New Jersey, getting pre-approved for your mortgage, or anything else, please reach out to us.
We’d love to recommend a great local lender or help out in any other way.