If you’re like many people, you’re excited about the prospect of house-hunting in Baltimore County or Howard County. Your dream home may be around the next corner – who wouldn’t be excited about that?
But before you get click-happy and start ranking the homes you see online, you should take a few minutes to get preapproved for a mortgage with a lender. Here’s why.
Why You Should Get Preapproved for a Mortgage Before You Start Your House-Hunt
Unless you plan to buy a home with cash, you’ll need a mortgage loan to finance your next home purchase. That means working with a lender who will decide whether to let you borrow enough to buy a house – and if the lender decides in your favor, it will tell you exactly how much you qualify to borrow. In fact, that’s the main reason you should get mortgage preapproval before you start house-hunting; it lets you know exactly how much house you can afford (or at least how much a lender is willing to give you).
Other than that, you need mortgage approval because:
- It shows sellers that you’re a serious buyer
- You can pounce on a house when you decide it’s a good buy
- It makes the lending process faster and more efficient
Here’s a closer look at each.
Related: Mistakes to avoid when you buy a bigger house
Reason #1 to Get Mortgage Preapproval: It Shows Sellers You’re a Serious Buyer
When you make an offer on a home, what you’re really doing is asking the seller to take it off the market just for you. To convince a seller that you’re a serious buyer who’s worth taking the home off the market for, you should include a preapproval letter that shows the seller that a bank is willing to let you borrow enough money to actually buy the home.
Reason #2 to Get Mortgage Preapproval: You Can Pounce on a House When You Decide It’s a Good Buy
When you find a home that you want to buy, you should make an offer right away. If you don’t, someone else will – and if that person is preapproved for a mortgage, there’s a good chance that the seller will accept their offer. You can keep yourself competitive (and able to jump on a great deal) by getting preapproval from a lender before you even start touring homes.
Related: 7 weird things to do near Ellicott City this weekend
Reason #3 to Get Mortgage Preapproval: It Makes the Lending Process Faster and More Efficient
In order to preapprove you for a mortgage, your lender will want to look at your financial history. That includes running a credit check on you, looking through your tax statements and pay stubs, and evaluating your financial preparedness. Those are some of the same things you have to do to get a mortgage loan, which means you’re already ahead of the game when it comes to making your application official.
Are You Buying or Selling a Home in Baltimore County or Howard County?
If you’re ready to buy or sell a home in Baltimore County or Howard County, we can help. Check out these listings:
If you’re thinking about selling your home, we can help you sell it quickly – and at the best possible price. You can:
If you have specific questions, fill out the form below or call us at 443-955-1227 – we’re here to help you with any aspect of your real estate transaction.[wpforms id=”220617″]