Thinking of buying a house? Getting pre-approved for mortgage is what you should do first.
Here are seven solid reasons why you should get pre-approved for mortgage:
- Peace of mind. Knowing that you qualify for mortgage.
- Knowing how much you qualify for – and on what conditions, if any.
- When you are not limited by “Conditions expiry time”, you can shop around, compare and find the deal that suits you the best.
- Lock in your interest rate – so, you don’t pay a higher interest rate even if the interest rates go high. Most banks/financial institutes generally lock in your rates for 120 days.
- Be ready to make an offer without delay when you find the property you like.
- Many sellers prefer to work with pre-approved buyers.
- Gives you an advantage specially in multiple offer situation.
And the two best things about getting pre-approved are – one, it costs you nothing and two, pre-approvals are no-obligations to you.
In other words, while the lenders commit to lock-in your interest rates and commit to offer you the loan (subject to the condition mentioned in the approval letter), you are NOT obliged to go with it – unless and until you sign a commitment letter.
Disclaimer: The information provided in this blog is current or correct to best of my knowledge. However, it is not a professional or legal advice or a substitute for a professional or legal advice. Readers of my blog are advised to seek professional advice before relying or acting upon the information published here.