If you're planning to buy a home in RI or in Bristol County MA, it's important to get a mortgage pre-approval before you start looking for homes. Here are the top 10 reasons why getting pre-approved is a smart move:
Know your budget and your financial abilities: With a pre-approval, you'll know exactly how much money you can borrow, so you won't waste time looking at homes that are out of your price range.
Gain confidence and increase your chance to win: A pre-approval letter shows sellers that you're serious about buying and have already taken the necessary steps to secure financing, which gives you an edge over other potential buyers.
Speed up the process: Since you've already gone through the pre-approval process, the mortgage application process will be faster and smoother when you find a home you want to purchase and are ready to place an offer.
Lock in on an interest rate: Pre-approvals often come with a locked-in interest rate, which protects you from rate increases while you're home shopping. A rate increase can substantially reduce your ability to purchase a home.
Avoid any surprises: A pre-approval will reveal any potential issues with your credit or finances, so you can address them before you start house hunting. We recommend fixing your credit (if/when needed) in order to gain access to better rates and terms.
Simplify the negotiating process: Having a pre-approval can make negotiations with the seller smoother, as they know you have the financial backing to make the purchase.
Stay organized and prepared: A pre-approval can help you stay organized during the home buying process, as it gives you a clear idea of what you can afford and what documents you need to provide.
Get expert advice: During the pre-approval process, you'll have the opportunity to speak with a mortgage expert who can guide you through the process and answer any questions you have. Once you are pre-approved it's easier to hire an experienced and knowledgeable real estate agent to help you find a good deal, negotiate on your behalf, protect your interest and manage the closing process.
Show sellers you're serious, ready and able to buy: A pre-approval can help you stand out in a competitive market, as sellers will know you're a serious buyer who can actually afford the home and took the necessary steps to prepare for a successful transaction.
Save valuable time and unnecessary disappointment: By getting pre-approved before you start your search, you can save time and avoid the disappointment of falling in love with a home that's out of your price range or unattainable due to financing issues.
In conclusion, getting pre-approved for a mortgage is an important first step in the home buying process. It can save you time, help you stay organized, and give you a competitive edge in a crowded market. So, if you're thinking about buying a home, make sure you get pre-approved before you start looking.
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