Considering the current real estate market in the United States, especially in Woodinville, Washington, the need for a pre-approved mortgage is essential for a speedy process. While a mortgage is a process of acquiring a loan for buying your desired home, pre-approval is the process that organizes your home-buying process by providing you with the go-ahead needed to gain the trust of your potential seller. In this article, we’ll explore why mortgage pre-approval is important when buying a property.
Power As A Buyer
Before buying a house, the first step should be to get a pre-approval letter from a lender. This shows the seller that you’re serious about the deal and specifies the amount you’re willing to spend. For a seller, being presented with a pre-approval letter differentiates you from a non-serious buyer; hence, if you want your dream home in this competitive market, pre-approval mortgage is the way to go.
With a high demand of properties among buyers, an increase in bidding wars can be observed across the nation. Pre-approval mortgage gives you the edge to stand out from your competition. It not only portrays a stronger financial position in front of the buyer but also gives you the power to negotiate on your terms. For this very reason, selecting the lender’s role becomes highly crucial.
A mortgage lender is a go-to person for your mortgage pre-approval, as a reputable mortgage lender’s letter can be a game-changer in getting your desired property. Generally, a lender helps you screen the process of buying a home by going over your finances and giving you feedback on how qualified you are for getting a particular loan. This puts you ahead of other buyers who do not have a plan in place and gives you the confidence to secure your desired loan.
Once you have gained clarity over your budget, you will be all set to start looking for homes that fit your requirements within your financial budget. Moreover, this will help you save time and focus on the subsequent phases of your home-buying process.
Steps For Pre-approval
Reaching out to the lender also helps them to organize the documents needed for pre-approval. Some of the documents that may be required for pre-approval are:
- Bank and investment account statements
- Tax returns for the last two years
- Social security Card
- Employment forms
While documents like these might seem lengthy, they help you organize beforehand and get your pre-approval on time. This will help you get on track for buying your desired house and make sure that no time is wasted in screening out the best fit for your budget.
If you need to smoothen out your home-buying process, pre-approval is deemed a necessary action. However, if you still have questions, feel free to contact Butler & Butler, to help you in each step of your way!