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There's plenty to think about when you're searching for a new home, and arranging a mortgage might not be at the top of your list. However, it's important not to leave this task to the last minute.
Receiving a mortgage preapproval before you even begin house hunting has many advantages, including saving you from a lot of stress and anguish. Here's a few more:
1. Avoids Delays
Getting your mortgage in place early removes one potential delay from the homebuying journey. As soon as you've found your dream home, you can make an immediate offer and get things moving. There's less risk of another buyer jumping in ahead of you while you wait for a financing decision.
2. Avoids Disappointment
With a preapproval already confirmed, there's no risk of falling for a home only to find out you can't actually afford it.
3. Narrows Your Search
Once you know exactly what price range you can afford, you'll narrow your search, making it quicker, easier, and less confusing.
4. Avoids Instant Rejection
Jaded sellers who've seen sales fall through because of finance issues love to see a pre-approval. They're much more likely to accept an offer, rather than rejecting it and telling you to come back once you've confirmed the finance.
5. Gives You a Competitive Advantage
If you're one of several potential buyers viewing a home, a mortgage preapproval will give you a competitive advantage over those who don't have one. Sellers will take your offer much more seriously when they know it's backed by finance. They're also more likely to accept a lower offer if they know the sale is likely to close quickly.
6. Provides a Chance to Fix Credit Problems
Before granting a preapproval, a mortgage lender goes through the whole credit-scoring process. If there are any problems, you have the chance to fix them without the pressure of watching your perfect home sell to someone else.
Filling out mortgage forms might not be as inspiring as viewing potential homes, but getting your preapproval in place early is important. It takes a lot of the stress, delay, and uncertainty out of the homebuying process, leaving you free to plan the next exciting stage in your life.
