What’s a mortgage preapproval, and why is it important? It assesses your income, assets, debts, and credit history then issues an exact loan amount you qualify for. The preapproval is more than just an extra step added to the mortgage process. In fact, it can benefit home buyers in 4 important ways! Watch the video or scroll below to find out how it can benefit you:
1. TIME TO PREPARE
Preapproval gives a buyer time to evaluate financing options available and decide on the best solution, as well as put in place a budget for new home ownership.
2. STRENGTH TO NEGOTIATE
A buyer with preapproved financing has increased power to negotiate an offer to purchase because sellers and real estate professionals take those offers more seriously.
3. FASTER CLOSINGS
Closings can be written in a contract sooner because the preapproval is in place. A quick closing is attractive to both the seller and real estate professionals involved.
4. EASIER PROCESS
The overall process is quicker, smoother, and less stressful for all parties involved because financing is done up front. Being prepared financially will allow you to concentrate on finding the right home.