Why should I consider a Pre-Approval?

Mortgage Pre-Approvals are not just for first time homebuyers.  Regardless of one's financial status, whether it is your first home purchase, or your fifteenth, the prudent approach in today's marketplace is to begin your new home shopping with financing already in place.

For one thing, no matter what your income level, if there are going to be any surprises, it is usually during the mortgage process that they tend to spring on you.  Time after time, even the most savvy and financially sound buyers run into unexpected delays due to such things as credit report items of which they were completely unaware, questions about large deposits or the shuffling of assets between accounts, incomplete documentation, tax return items, or any one of a host of details and technicalities that can hold up the process.  Even if everything goes smoothly and quickly, the mortgage process is the most complicated, detailed, paperwork driven step  in the entire home buying process, as well as the most important.  After all, unless you are among the fortunate few sitting on a mountain of cash, without the mortgage there is no purchase.  Would it not seem better to have the whole thing out of the way in the beginning so that finding a new home and preparing for the move are the only concerns. With time spent shopping for the right home, preparing for and scheduling the move and its associated tasks, and keeping up with the business of day to day life, it just seems sensible to eliminate  the waiting game and the added stress of uncertainty as to whether or not a lender is going to be ready to close according to your plan.

Besides, home sellers and Real Estate Agents agree that buyers with a pre-approved loan are the preferred buyers.  After all, with your approval in hand, it is like shopping with cash, or at the very least, a big credit card.  If two buyers fall in love with the same house, which do you think will be looked upon more favorably when presenting an offer - the one who still has to apply for a loan and wait for the approval, or the one "shopping with cash" and ready to close?

Or if you are lucky enough to have no competition for the house of your dreams, having eliminated the seller's concerns about financing and potential delays might just give you a little edge in negotiating your terms.

There are no disadvantages to obtaining a pre-approval, and it only involves the cost of a credit report - a small price to pay for the advantages of  the comfort level it provides and a big step toward a worry free home purchase.