The house-hunting process can be a time-consuming and drawn-out process for every potential homeowner. Finding the luxury property of your dreams, touring it, and handling the finer details can quickly become an all-consuming project.
So when you’re nearing the finish line and getting ready to sign on the dotted line, you don’t want the luxury home buying process to grind to a halt while waiting on your mortgage application approval. There are many benefits available to homeowners that get pre-approved for a mortgage, and knowing what they are can give you an edge in your search.
What Does It Mean to Be Pre-Approved for a Mortgage?
Your financial history and situation determine a great deal about what kind of home you can buy. A critical component of purchasing a home revolves around showcasing that you can make payments when required and have the credit history to back it up.
You’re Serious About Buying a Home
Getting pre-approved for a mortgage means that a lender has thoroughly checked your credit and reviewed your financials and determined that you can handle the responsibility of the monthly debts that come with a mortgage. The pre-approval lets your real estate agent know you’re serious about buying a home and provides a clearer picture of what kind of budget you can handle.
Set Your Budget Quicker
Staying within your budget for your next home can have far-reaching effects on your life that you may not have considered. If you reach beyond your means, your financial future can get thrown out of whack and you might nee to take more drastic measures to stay afloat. However, getting pre-approved for a mortgage helps you have a clearer picture of your total budget. This way, you can focus on the added features of your new home instead of if your home loan amount puts you over budget.
Prove to the Seller Your Are a Low-Risk Buyer
When sellers look at potential buyers for their properties, they want a buyer who presents the least amount of risk possible. High-risk buyers present more uncertainty that can affect everyone, from the mortgage lender, the seller, and the buyer. However, if you get pre-approved for a mortgage, you show the sellers that your financials are in order and represent a low risk.
Limits the Number of Surprises
There are aspects of buying a new home that you may not have considered that could become roadblocks for first-time home buyers if you haven’t had to deal with them before. Things like low credit scores, out-of-balance debt-to-income ratio, and other financial facts that can hold up the home buying process can quickly take you by surprise. However, getting pre-approved for a mortgage will uncover these potential pitfalls before becoming a serious problem with your new home.
Speed Up the Closing Process
One of the potential areas of the home buying process that can drag out remains the closing process. Most of the time, closing a luxury real estate deal involves gathering your financial information, including credit card and bank statements, tax returns, and credit reports, and verifying you can make the necessary mortgage payments. A pre-approval means most of this information has already been collected and is in your lender’s system.
Trust Artemis Real Estate Group With Helping Buy Your Next Home
Whenever it comes time to buy your next home, you need a guiding hand to help ensure you get into the luxury home you’ve always wanted. Getting pre-approved for a mortgage can help ensure you have the financial power to make the purchase and clearly understand your budget. Knowing where to go to get your pre-approval gets easier when you have Artemis Real Estate Group in your corner.
Discover how our high-end real estate agents in Huntingdon Valley, PA, can help you have everything you need to get pre-approved for a mortgage and get into the home of your dreams faster!