What are the benefits of getting pre-approval before buying a home?

In a competitive market, it’s important to know your budget so that you can focus on searching for the right property for you. The best way to boost budget confidence is to get pre-approval for a mortgage loan.

Pre-approval is established by a lender and confirms that you meet the criteria for a home loan, subject to valuation and other terms such as mortgage insurance approval.

Getting pre-approval for a home gets a lot of the initial paperwork out of the way and removes the uncertainty of whether you can afford a property or not, which saves you a lot of time when buying your new home.

As well as boosting your confidence and saving you time, having pre-approval can give you the upper hand during the negotiation process as sellers are more likely to accept your offer because you’re giving them peace of mind that you’re qualified to obtain a loan. In today’s market where Auction’s are growing in popularity, it also allows you to know your limit without delay, mitigating any risk.

Finally, a pre-approved loan reduces the closing period window as you forgo the loan application processing time which in turn, speeds up the entire processing procedure meaning you can move in sooner.

 

 

Article by Grace Holgate

Article by Place Newmarket

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