We’ve said it many times, but that’s because it’s so important. If you want to buy a North County San Diego home — especially in today’s market — you need to get pre-approved for a mortgage. A mortgage pre-approval is simply verification from a lender that you are qualified to borrow a certain amount of money. The lender will look at things like your credit score and debt-to-income ratio to determine that amount and the interest rate. The better off you are financially, the more the lender will pre-approve you to borrow. But why is it so important to get pre-approved? Let’s break it down.
It lets you know your budget
It’s so easy to get carried away when you start looking at homes for sale. Pretty soon, you may get your heart set on a home, only to discover that you can’t actually afford it. Getting pre-approved lets you know what you have to work with. It shows you what you can comfortably pay should your finances stay the same. This way, when you start shopping for a home, you can zero in only on the homes that you know you can afford. It saves time with your search and heartache by setting up realistic expectations.
It signals you’re a serious buyer
The second reason it’s so important to get pre-approved for a mortgage is that it lets the seller know they can take your offer seriously. There are many buyers competing for the same homes in today’s market because of low inventory. Your offer won’t get a second glance from a seller if you aren’t pre-approved. Why would they take a chance on you if they know another buyer will make it to the closing table? Your pre-approval mitigates some of the risks for the seller.
It may give you some room to negotiate
While it’s gotten more difficult to negotiate in today’s seller’s market, it’s not impossible. Since you’re pre-approved the seller may be willing to make some concessions since they know you’re already qualified for a loan. This could include repairs or improvements you’d like to see happen before you close on the house.
It will help you close faster
Closing on a home can be a complex and stressful process. If you’re pre-approved for a mortgage then the process will go faster. It generally takes about 50 days to close on a home. You can get a jump-start on the process if you’ve already gotten your financials squared away with the lender. It will let you move to the next steps more quickly. This can also make you more attractive to the seller.
There’s no obligation
It’s important to remember that if you get pre-approved for a mortgage you’re not on the hook for anything. There is nothing binding about the pre-approval. If you find a better deal with another lender or decide to postpone your search, you’re not out anything except your time.
Contact the Clark & Gilman Team today!
Are you ready to jump into the North County real estate market? Then contact the experts at Clark & Gilman Team at 760-758-1211 or [email protected] today. We’re here to answer all your questions and help you successfully and confidently buy your new North County home!