You’re planning to buy a home in the Triangle and you’re ready to start shopping… but are you preapproved for a loan? From organizing your finances to gaining a competitive edge, there are plenty of reasons to get preapproved before you start searching homes for sale.
Here are four reasons to get preapproved for a mortgage before you start home shopping.
But First… What is Preapproval?
What is this “preapproval” anyway?
Simply put, getting preapproved means sitting down with a lender (or a few lenders) to review your income, your credit history, and your assets and debts. Once your (potential) lender has reviewed this information they can tell you whether you’ll qualify for a loan and how much loan you’ll qualify for.
Why Get Preapproved?
Now that you know what preapproval is, why bother? What’s the importance of getting preapproved before you start talking to real estate agents and touring homes? Here are some of the benefits:
You Know How Much You Can Afford
A price tag on a home just seems like a really big number until you sit down with a lender and they break down the monthly costs for you. A six-figure price tag becomes much more affordable when you’re only paying, say, $1,300 a month for it.
Getting an idea of monthly costs can help you budget for your new home, and it can also give you a price range to start your shopping.
You ID Potential Problems
You’re pretty pleased with your paycheck… but how’s your credit? What about your debts? Sitting down with a lender is a good way to review your current financial stability. If you’re in the green, great! You’re ready to buy. But if your finances need a little boost… wouldn’t you rather know that before you spend hours and hours touring homes?
You Understand Your Options
You may be hesitating to buy a home because you don’t think you’ll qualify or have enough savings. But not all loans require stellar credit and a 20% down payment. Talking with a lender can bring to light plenty of other loan options available to you, such as the FHA Loan or even state or county-wide specialty loans.
You Become a More Competitive Buyer
Not only does getting preapproved bring you peace of mind, it can also help make your offer stronger—which is vitally important in a competitive market like the Triangle.
Including a letter of preapproval with your offer shows the seller that you can qualify for enough money to cover the cost of the house. It also shows them that you’re a serious and motivated buyer—both of which make your offer more attractive than offers from buyers without prequalification.
Ready to Find Your Home in the Triangle?
Are you thinking of relocating to or buying a home in the Triangle? Then it’s time to contact Trademark Residential. We’re here to help you explore the area, discover its beautiful neighborhoods, and find the perfect home for you.