MIKE SELVON asked:
If you have been putting all your energies and your heart into finding a new house that is the perfect match for your family, then often the difficulties associated with securing the home mortgage loan can sour the whole experience. The time of buying a new house is usually filled with excitement, eagerness and anticipation about the family’s future in a new place, and getting your mortgage home loan financing lined up before you start home-shopping can help you enjoy the complete process much more.
Getting your mortgage loan pre-approved can be a big benefit to you in a number of ways. First of all, if your mortgage home loan is already approved before you start looking for a house, then you will know your price range.
This can end up saving you an enormous amount of time, not to mention heartache. It can be devastating to find a wonderful house that you have fallen in love with after weeks or months of searching, only to find out after waiting to be approved that you don’t qualify for the mortgage home financing.
On top of helping you save a lot of time by better focusing on which houses you should view and tour and avoiding heart-rending disappointments, you will also discover that you will have more confidence as you shop knowing that you have been pre-approved for your home mortgage loan. There is no doubt that people can function better when they know the parameters they need to operate within, and this same principle certainly applies as well in terms of home-buying.
This leads to being able to enjoy a better relationship with a real estate buyer’s agent. When you have pre-approval on your mortgage borrowing, a buyer’s agent will be much more willing to work with you. Houses are listed by agents that represent the seller of the home, and they look out for the best interests of the seller only, by contract and by law.
But you can engage a buyer’s agent to help you sort through the real estate market and work in your best interest. Because your buyer’s agent only gets paid if you end up buying a house they sold to you, they are willing to work hard to help you. And, if you come to them pre-approved for your mortgage loan, then they know the chances of you closing on a new house are very high, so they will be more interested in working with you than someone who has not lined up their home financing yet.
When your agent runs across a great deal or hears about a new listing that hasn’t even hit the market yet, who do you think they will call first? Probably the person who has their mortgage borrowing package already sewn up and ready to roll.
And, that leads to the most powerful reason to get pre-approved for your mortgage loan. When a seller is faced with multiple offers and your offer clearly states that your mortgage home loan is already approved and that you can close on the deal very quickly, you stand out and are more likely to have the seller accept your offer, even if it is slightly lower than the others.
Obtaining the home mortgage loan before you begin your house search is an approach that makes good sense on every level and that helps to create win-win situations. Not only will you save time and simplify your search, but you will be able to avoid frustrations and just enjoy the complete process and give yourself an extra bargaining chip to boot.
TERENCE
