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Why Should I Get Pre-Approved?

If you’ve ever shopped for a home, or are thinking about doing that in the future, then chances are you have thought about mortgage pre-approval at one time or another. What is a pre-approval? Why should you get pre-approved? Is it just something lenders cooked up to rope you in? Before you start shopping for a home, let’s take some time to understand the value and significance of a pre-approval.

There are several advantages to getting pre-approved for a home loan. The first is that by getting your pre-approval, you can focus only on homes that are within the range of what the lender will finance for you. Second, getting pre-approved gives you a leg up over other potential buyers who are not pre-approved. If two people have put in the same offer on a house, the seller is more likely to go with the person who is pre-approved. Knowing that the pre-approved buyer already has their ducks in a row and understands what they can afford – this will provide a sense of security for the seller. From the seller’s perspective, that could make the whole process go more smoothly, with less chance of the buyer backing out because of financing issues.

It is also important to note that there is a difference between pre-approval and pre-qualification, which we’ve explained in more detail here.

Our mortgage experts will help determine what you can potentially afford on your next home so that you can keep a competitive edge in the current market. This will help you understand what price range is best for your budget. That way you can keep an eye out for the best options to match your specific financial needs.

Are you looking to purchase a home in the near future? With current interest rates on the rise, now would also be a good time to lock in your rates with our RateFlex program. You get the complete protection of a rate lock commitment and if rates go down before you close, we’ll flex your rate and give you the lower rate! Just contact us — it’s easy to get started.

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Step 1: Plan Your Home Buying Budget

You do need a few items readily available before you start contacting lenders about a mortgage. Having these things up front will make the process easier and less stressful.

Step 2: Get Mortgage Preapproval

Both the approval process, and the rates available are very subjective. What might have been a factor in your friend’s mortgage approval or the rates they received might not affect your approval or rates, and vice versa.

a couple sit in the kitchen of a show home and discuss some figures with the estate agent or mortgage advisor

Step 4: Closing on your new home

Your comprehensive guide to what to expect when buying a home: who you’ll work with, what timeline to expect, and what you’ll need to do to ensure the process runs smoothly.

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