The time has come for you to find your next home. There are plenty of points on a to-do list that you’ll check off. You’ll find the right agent, choose your perfect neighborhood, and make a list of the features you want in a home. All of these are great steps!
While the best move you can make toward your next home purchase may not sound extremely exciting, but it’s arguably one of the most important.
Get preapproved for your home loan.
Today’s market is becoming more and more competitive. Buyers are learning they need to stand out. Often, multiple buyers will vie for the same home. Mortgage preapproval gives you, as a buyer, an edge.
Preapproval shows sellers that you are a serious buyer. It can make your offer stand out from other, less serious, potential buyers. It shows that you have done the work and secured the money to move forward with a purchase.
Not only will preapproval give you an edge as a buyer, it can also give you a more realistic idea of your home budget. Knowing exactly how much money you’ll be able to spend on a home will manage any expectations you have going into the home buying process. It can eliminate wasted time viewing homes that are outside of your actual budget.
In order to start the process of preapproval, you’ll need to decide upon a lender. By working with experienced agents like us here in The Silva Group, you can get matched with a tried and trusted lender. Seeking out a lender is a scary prospect for most people, and working with your agent’s trusted lender can give you some peace of mind.
A lender will determine just how much money you’re preapproved for by looking at the 4 C’s: capacity (if you’ll be able to make payments), capital (what you have that can translate into cash), collateral (the type of home you’re looking to buy), and credit (your credit score). These factors are the equation a lender will use to determine what type of mortgage you can qualify for.
Once you’ve got your preapproval in hand, you can set forth on the more exciting parts of the home buying process. You will have confidence that many other buyers won’t have. You’ll be able to walk into homes knowing exactly what you can and cannot spend. It will speed up the process and make you more attractive to sellers.
Preapproval may not sound exciting at first, but it is arguably the best move you can make to start the exciting process of your next home purchase.