Do I need to get a Mortgage Pre-Approval?

If you're ready to start house hunting for your first home or investment, you may have heard the words "pre-approval" before. A mortgage pre-approval is an important step in the home buying process, providing a number of benefits to potential buyers. Today we'll explore what a pre-approval is and why it's so important.

Understand Your Buying Power

A big benefit of getting a pre-approval is that it can help you understand your buying power. Because you are submitting your financial and personal information, you can get a clear picture of how much you'll be able to borrow for a home loan. This can help narrow down your search for a home and ensure that you're looking at properties within your budget.

Stand Out to Sellers

In a competitive housing market (also known as a seller's market), a pre-approval can help you stand out to sellers. It shows that you're a serious buyer who has already taken steps toward securing finance for a home purchase. This can make your offer more attractive to sellers and increase your chances of having an offer accepted.

Speed Up the Home Loan Process

Getting pre-approved can speed up the process of getting full loan approval when you've found a home you want to buy. Since you've already provided most of the required information during your pre-approval application, the loan process moves more quickly once you've found the right home.

Gain Peace of Mind

Getting a pre-approval for a home loan can definitely provide peace of mind. It can help you avoid wasting time looking at homes that you won't be able to afford. It can also give you confidence when making an offer on a home, knowing that you've already taken steps toward securing financing.
In conclusion, the team at SM Property will always recommend you get a pre-approval before you start the property buying process. A pre-approval for a home loan can provide a number of benefits to potential buyers. You can either go directly to a bank to get this done or work with a mortgage broker, which typically makes the process a lot easier for you! Click here if you want to contact the team for some great mortgage broker recommendations.
There can be lots of things to remember when buying your first home. Luckily, we've made a super handy guide to help you through each step of the way! Click here to download our First Home Buyers Guide for free!