Reasons Why Getting Pre-Approved For a Home Loan Is Crucial If You’re Buying
If you’re thinking about buying a home, one of your first steps should be getting pre-approved for a home loan. Most homebuyers find it worthwhile to shop around with different mortgage lenders in order to find the best loan terms and interest rates. As a potential home buyer, you’ll discover that there are many benefits to getting pre-approved for a home loan.
In order to get pre-approved, you’ll need to work with a qualified mortgage lender. You’ll give them your financial details, such as income statements and tax returns, and the lender will review your documents to determine if it’s likely that you’ll qualify for a home loan. Although a pre-approval isn’t a certain guarantee that you will get a home loan, it means you’re more likely to secure financing, assuming that circumstances such as your income don’t change significantly.
It will take a bit of time and effort to be pre-approved for a home loan, but your Pagosa Spring real estate agent will recommend getting it done before you start going to open houses or scheduling home showings. Here are some reasons why it’s important to get pre-approved before you shop for a home in Pagosa Springs:
You’ll Learn How Much Your Mortgage Will Cost
Once you’ve been pre-approved, your lender will be able to tell what interest rate you qualify for. In many cases, you can even lock in that rate right away so you will know exactly what you’ll end up paying for your home loan. This will prevent surprises later when you are ready to actually purchase your new home. You can be sure that the amount of money you intend to borrow for your new home will actually fit into your budget and be able to assess whether the costs you’ll be paying for your new home are worthwhile. Although your exact mortgage payment and insurance costs will vary from home to home, knowing important details about your mortgage ahead of time will make the home buying process with a Pagosa Spring realtor even faster and easier.
You’ll Know What Price Range You Can Afford
As part of the pre-approval process, your home loan lender will tell what amount you are pre-approved to borrow. It’s smart to avoid maxing out your budget when you’re buying a new home, so you’ll want to have an idea of the upper limits of what Pagosa Springs real estate you can afford. This will prevent you from wasting time figuring out if a home is in your budget and spare you from falling in love with a home that you can’t afford.
Your Offer Is More Likely To Be Accepted
Once you’ve found a home you love and are ready to purchase, you want the best chance of your offer being accepted by the seller. You’ll want your offer to show that you are a qualified borrower who can get a home loan and who is ready to follow through with the home purchase. In fact, many sellers won’t even consider an offer without proof that you can actually afford the property and are able to go through with the sale. Part of this proof includes obtaining a pre-approval from a mortgage lender recommended by your Pagosa Springs realtors.
Since getting pre-approved can take days to weeks, you’ll want to get the process done before you start looking at homes so you can have your pre-approval letter ready for making an offer on the home you want to purchase. If the seller requires pre-approval, you are at risk of missing out on the opportunity to purchase the property if another buyer who is already working with a mortgage lender submits an offer before you can get pre-approved.
Doing the work of getting pre-approved up front will make your life much easier during the home buying process. You will avoid wasting your time, falling in love with a property that is unaffordable, and missing out on the home you want because you are unprepared.
It’s likely that today’s low interest rates won’t stay this low for much longer. Take action today with a mortgage lender recommended by your Pagosa Spring real estate agent so you can potentially lock in a great interest rate before the market changes and be ready for when you find the perfect new home.
Find The Perfect Home In Pagosa Springs With An Experienced Realtor
Whether you are looking to buy or sell a home in Pagosa Springs, the Kaufman team is ready to guide you through every step of the process. Save time, headaches, and hassle by taking advantage of our extensive knowledge of Colorado real estate processes and the Pagosa Springs area. Contact us today to learn how we can serve you!