More often than not, a home buyer with a pre-approved mortgage stands more to gain than the home buyer without it.
This is because most home sellers are apt to view purchase offers supported by a pre-approved mortgage more positively.
In a nut shell, mortgage pre-approval is a great negotiating tool.
With a mortgage pre-approval, you are sending a signal to sellers that you are serious and that you have the fiscal back-up to make the purchase; summing up, you have more credibility.
Plus, mortgage pre-approval gives you a realistic idea of how much money you can afford to part with.
What’s more a seller might be persuaded to sign on a slightly lower offer if it is backed by a sound pre-approval.
This can be especially handy if you are competing with a buyer who hasn’t applied for a mortgage yet.
Before getting pre-approved for your mortgage keep in mind that pre-approvals are not full approvals and that you should get acquainted with their many advantages and few disadvantages.
The best thing about getting your mortgage pre-approval is that it is simple, easy and costs nothing.
Moreover, if you hire services of a licensed mortgage professional you may qualify for a locked-in interest rate from 60 to 120 days while you are considering your shopping options for the best rate.
Should interest rates inch down, your locked-in rate will go down too. On the other hand, if interest rates edge up, your locked-in interest rates won’t.
If you opt for a locked interest rate, you are guaranteed mortgage terms equivalent to that rate or lower.
Also, you are under no obligation to use the lender who has pre-approved you for a mortgage.
What’s not to like about all this?
Don’t procrastinate and get pre-approved for a mortgage to get the best loan terms out there.
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