You may be someone who enjoys going to open houses even when you aren’t wanting to move, just because you enjoy looking at homes and residential styles. But once you actually start looking for a new place to live, you will find that it’s easier if you get pre-approved for a mortgage before you start looking seriously.
Paving the Way to Your Future
You don’t want to find the perfect house in the perfect neighborhood for the perfect price and miss out on it because you find surprises in your credit history.
Even if you feel like you are keeping track of your finances, there can be glitches if, for instance, someone else’s problem is inadvertently added to your report.
If you get pre-approved, you can make an offer with confidence. It will also keep you from wasting time looking at homes out of your current financial comfort zone.
A Need for Speed when it comes to Real Estate
Getting that pre-approval letter can take weeks, but the sooner you get started, the sooner you will get through the process.
You can nail down your best rate, using soft pulls at multiple lenders to minimize the impact on your credit score. As long as you are using soft pulls to explore your options, you won’t get the extra points that can affect your credit score. You want to keep your score high to save money on your mortgage.
The real estate market has been competitive in recent years, and great properties can be snatched up quickly. Most sellers won’t accept your offer if you don’t have your approval letter in hand, unless you can offer cash. Be ready before you start looking so you can be the one who snatches up the great property for yourself.