Why Getting Pre-qualified for a Mortgage is Essential

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Why Getting Pre-qualified for a Mortgage is Essential

A pre-qualification, also known as a pre-approval, is a letter from a lender that specifies the amount of money the lender is willing to give you. The lender generally comes up with the loan amount by checking your credit scores and evaluating your assets and debt to income ratio. There are several reasons why getting this document is essential to your home shopping process.

  • It Gives You a Competitive Edge

In a seller-dominated market, you don’t have much power in the purchasing process. This means you may need an extra advantage if you want to bid for a great property in a decent location. Getting pre-qualified helps make your offer credible and gives you an upper hand should you submit an application alongside other home buyers.

  • It’ll Help You Know What You Can Afford

When you are looking to purchase a home, there are many needs to juggle to find a suitable home for your family. One of the most important needs is cost. When you obtain a mortgage pre-approval, it will let you know what you are working with. That way, you can know your budgetary limits and find a home you will be able to afford financially.

  • It Gives You Negotiation Power

A mortgage pre-approval also offers you credibility, allowing you to bargain and negotiate some aspects of the home buying process. When a seller learns that you’re already qualified for the offer amount, they may be ready to make some compromises. For example, if you need some upgrades or repairs done to the house, your pre-qualification will make it easier for you to get what you want.

How Landmark 24 Can Help

While a pre-qualification does not guarantee you a loan offer, it is worth acquiring as it assures the seller that you’ll be able to obtain financing to purchase the home.

Ready to get started? Browse our website to view our available homes at Landmark 24 Homes today. You can also contact us to learn more about our mortgage programs and connect with one of our preferred lenders today.