If you're a first-time home buyer unsure of how to get a leg up in the housing market, we have one tool that we cannot recommend more: preapproval. Having a mortgage preapproval will give you an advantage when making an offer on your home and help you avoid any surprises in the loan application process.
A preapproval is a determination by a lender that you can secure a loan. Preapprovals usually consider factors like your credit history, debt-to-income ratio, income, employment history, and a soft pull of your credit score.
Once you're preapproved, you'll have a preapproval letter that you can show to sellers. This preapproval will assure sellers that you're committed to a home purchase and have done your due diligence to ensure that you can actually secure the funds needed to purchase their home. For newer buyers, preapprovals add weight to your offer.
Being preapproved will also give you more insight into the lending process once you've secured an offer. You've already worked with your lender and know what you qualify for if you're preapproved. This knowledge going into the next step of the lending process can take away some of the uncertainty and stress that accompanies the home buying process.
Finally, a preapproval means that you'll be able to close on your home that much faster. Since you've already started the lending process, you'll be one step closer to closing on your home than you would have been had you not been preapproved when you made your offer.
Are you looking to start your home search off on the right foot? Our mortgage team has more than 100 years of combined experience helping people purchase the home of their dreams. Start your mortgage application today here.