The process empowers you as a homebuyer, but also provides certainty for all parties involved (buyer, realtor, and seller) that you’ll be able to secure home financing. As the global pandemic continues to affect the current buying and lending environment, getting a pre-approval is an easy and efficient way to help navigate these new disruptions and have one less thing to worry about. <\/p>\n\n\n\n
Below, we break down four reasons why the pre-approval process is so important for home buyers.<\/p>\n\n\n\n
1. Sort Out Complicated Financial Situations Ahead of Time<\/h3>\n\n\n\n![\"\"](\"https:\/\/morty-content-production.s3.amazonaws.com\/uploads\/2017\/11\/shutterstock_367090163-1024x683.jpg\")
<\/figure><\/div>\n\n\nProbably the best reason to get pre-approved for a mortgage? Avoiding surprises related to home financing once it comes time to make an actual offer on a home. <\/p>\n\n\n\n
And if you suspect that you may face some difficulties or issues securing financing for your home purchase? Well, you\u2019ll want to give yourself plenty of time to clear those hurdles, and getting a pre-approval in advance does just that.<\/p>\n\n\n\n
Especially with the global pandemic, a lot of borrowers have seen their income or employment affected in one way or another; getting approved upfront based on these changes is vital to the homebuying process. Whether you own a business, have a complicated financial situation, or have seen disruptions to your employment or assets, going through the pre-approval process can help you understand how your current financial situation stacks up against lenders\u2019 standards and requirements for mortgage borrowers. Lenders across the industry are changing and updating their underwriting and approval requirements on a daily basis, so making sure that you are being pre-approved for the latest and most up-to-date requirements is important. <\/p>\n\n\n\n
That said, it\u2019s always much better to find out about issues before<\/em> you\u2019ve got sellers and contracts involved. And once you\u2019ve secured pre-approval, you can rest a little easier. You\u2019ll know that you\u2019ve already jumped through most of the necessary hoops for financing for your home purchase.<\/p>\n\n\n\n2. Catch Potential Credit Issues Before They Derail Your Home Buying Plans<\/h3>\n\n\n\n![\"Women](\"https:\/\/morty-content-production.s3.amazonaws.com\/uploads\/2016\/12\/person-home-plant-1024x683.jpeg\")
<\/figure><\/div>\n\n\nEven if you think you\u2019ve got stellar credit, the mortgage pre-approval process can alert you to any errors on your credit report.<\/p>\n\n\n\n
Millions of Americans have inaccurate information on at least one of their credit profiles with the major credit reporting bureaus. If you\u2019re one of them, you\u2019ll be much better off finding out early in your home-buying process. The last thing you want is to discover a credit issue as you\u2019re trying to put in an offer on your dream home.<\/p>\n\n\n\n
Mistakes and errors on credit reports are surprisingly common. Thankfully, the process of disputing and removing inaccurate credit data is relatively straightforward. But it can take some time\u2014anywhere from a few weeks to a few months. As long as you\u2019ve started your pre-approval application early enough? Then you can clear up any issues related to errors or inaccurate credit reporting before they become a major inconvenience.<\/p>\n\n\n\n
3. Understand What You Can Afford<\/h3>\n\n\n\n![\"\"](\"https:\/\/morty-content-production.s3.amazonaws.com\/uploads\/2017\/10\/shutterstock_425326012-1024x683.jpg\")
<\/figure><\/div>\n\n\nWhen you secure a pre-approval for a mortgage, you won\u2019t just get a \u2018yes\u2019 or \u2018no\u2019 answer from a lender about whether<\/em> you qualify for a mortgage. You\u2019ll also find out how much<\/em> you\u2019ll potentially be able to borrow based on your current financial situation.<\/p>\n\n\n\nNow, borrowing the absolute maximum amount a mortgage lender is willing to offer you is probably not the most financially-savvy choice for most would-be homebuyers. Hopefully, you\u2019ve also created a budget for your household. Before you buy a home, you should have at least a rough idea of how much of your income you\u2019d be able and willing to pay for your housing each month. If you want to quickly see what you\u2019re able to afford and what potential monthly expenses could look like, get a custom quote from Morty<\/a>.<\/p>\n\n\n\n4. Navigate Buying in the Current Market with Confidence<\/h3>\n\n\n\n![\"\"](\"https:\/\/morty-content-production.s3.amazonaws.com\/uploads\/2017\/03\/shutterstock_531470845-1024x731.jpg\")
<\/figure><\/div>\n\n\nIn the first months of 2020, we saw record levels in monthly home sales , and most real estate markets were at the peak of competitiveness for buyers working to get their offer accepted. In normal times, the pre-approval letter is often used to get an edge over other would-be bidders because it shows sellers that you are trustworthy and can secure financing. It offers a leg up because sellers don\u2019t want to accept an offer from a buyer who may have trouble securing financing; many sellers would rather take a slightly lower<\/em> offer from a potential buyer who can provide solid evidence that the financing will happen<\/a> without issues than accept a higher<\/em> offer from a potential buyer who has yet to start the mortgage process. <\/p>\n\n\n\nHowever, over the past month we have seen mortgage applications decline as many buyers and sellers have decided to put this on hold while we all wait to see how things play out. We\u2019ve actually seen sellers pull back more than buyers as they think it is a bad time to sell and they won\u2019t get as good of a deal as they would have pre-shutdown. On the other hand, buyers have been trying to find good deals in this environment, especially those that know they are ready or need to purchase. This being said, markets are still active and homes are still being purchased, so a strong pre-approval reflective of all of the recent changes in this environment may help as you negotiate with potential or reluctant sellers. It may also help convince sellers that have put things on hold to entertain the idea especially if either party is constrained by time.<\/p>\n\n\n\n
Getting pre-approved for a mortgage can help you clear up potential financing issues before they become serious problems. Given the current environment with COVID-19, having a clear understanding of how your financial situation stacks up with changing lender requirements and how much home you can afford is just as important as ensuring a seller is confident in your offer\u2014with a pre-approval, you can do both.
<\/p>\n\n\n\n
Ready to get your own mortgage pre-approval?<\/p>\n\n\n\n
<\/figure><\/div>\n\n\nProbably the best reason to get pre-approved for a mortgage? Avoiding surprises related to home financing once it comes time to make an actual offer on a home. <\/p>\n\n\n\n
And if you suspect that you may face some difficulties or issues securing financing for your home purchase? Well, you\u2019ll want to give yourself plenty of time to clear those hurdles, and getting a pre-approval in advance does just that.<\/p>\n\n\n\n
Especially with the global pandemic, a lot of borrowers have seen their income or employment affected in one way or another; getting approved upfront based on these changes is vital to the homebuying process. Whether you own a business, have a complicated financial situation, or have seen disruptions to your employment or assets, going through the pre-approval process can help you understand how your current financial situation stacks up against lenders\u2019 standards and requirements for mortgage borrowers. Lenders across the industry are changing and updating their underwriting and approval requirements on a daily basis, so making sure that you are being pre-approved for the latest and most up-to-date requirements is important. <\/p>\n\n\n\n
That said, it\u2019s always much better to find out about issues before<\/em> you\u2019ve got sellers and contracts involved. And once you\u2019ve secured pre-approval, you can rest a little easier. You\u2019ll know that you\u2019ve already jumped through most of the necessary hoops for financing for your home purchase.<\/p>\n\n\n\n Even if you think you\u2019ve got stellar credit, the mortgage pre-approval process can alert you to any errors on your credit report.<\/p>\n\n\n\n Millions of Americans have inaccurate information on at least one of their credit profiles with the major credit reporting bureaus. If you\u2019re one of them, you\u2019ll be much better off finding out early in your home-buying process. The last thing you want is to discover a credit issue as you\u2019re trying to put in an offer on your dream home.<\/p>\n\n\n\n Mistakes and errors on credit reports are surprisingly common. Thankfully, the process of disputing and removing inaccurate credit data is relatively straightforward. But it can take some time\u2014anywhere from a few weeks to a few months. As long as you\u2019ve started your pre-approval application early enough? Then you can clear up any issues related to errors or inaccurate credit reporting before they become a major inconvenience.<\/p>\n\n\n\n When you secure a pre-approval for a mortgage, you won\u2019t just get a \u2018yes\u2019 or \u2018no\u2019 answer from a lender about whether<\/em> you qualify for a mortgage. You\u2019ll also find out how much<\/em> you\u2019ll potentially be able to borrow based on your current financial situation.<\/p>\n\n\n\n Now, borrowing the absolute maximum amount a mortgage lender is willing to offer you is probably not the most financially-savvy choice for most would-be homebuyers. Hopefully, you\u2019ve also created a budget for your household. Before you buy a home, you should have at least a rough idea of how much of your income you\u2019d be able and willing to pay for your housing each month. If you want to quickly see what you\u2019re able to afford and what potential monthly expenses could look like, get a custom quote from Morty<\/a>.<\/p>\n\n\n\n In the first months of 2020, we saw record levels in monthly home sales , and most real estate markets were at the peak of competitiveness for buyers working to get their offer accepted. In normal times, the pre-approval letter is often used to get an edge over other would-be bidders because it shows sellers that you are trustworthy and can secure financing. It offers a leg up because sellers don\u2019t want to accept an offer from a buyer who may have trouble securing financing; many sellers would rather take a slightly lower<\/em> offer from a potential buyer who can provide solid evidence that the financing will happen<\/a> without issues than accept a higher<\/em> offer from a potential buyer who has yet to start the mortgage process. <\/p>\n\n\n\n However, over the past month we have seen mortgage applications decline as many buyers and sellers have decided to put this on hold while we all wait to see how things play out. We\u2019ve actually seen sellers pull back more than buyers as they think it is a bad time to sell and they won\u2019t get as good of a deal as they would have pre-shutdown. On the other hand, buyers have been trying to find good deals in this environment, especially those that know they are ready or need to purchase. This being said, markets are still active and homes are still being purchased, so a strong pre-approval reflective of all of the recent changes in this environment may help as you negotiate with potential or reluctant sellers. It may also help convince sellers that have put things on hold to entertain the idea especially if either party is constrained by time.<\/p>\n\n\n\n Getting pre-approved for a mortgage can help you clear up potential financing issues before they become serious problems. Given the current environment with COVID-19, having a clear understanding of how your financial situation stacks up with changing lender requirements and how much home you can afford is just as important as ensuring a seller is confident in your offer\u2014with a pre-approval, you can do both. Ready to get your own mortgage pre-approval?<\/p>\n\n\n\n2. Catch Potential Credit Issues Before They Derail Your Home Buying Plans<\/h3>\n\n\n
<\/figure><\/div>\n\n\n3. Understand What You Can Afford<\/h3>\n\n\n
<\/figure><\/div>\n\n\n4. Navigate Buying in the Current Market with Confidence<\/h3>\n\n\n
<\/figure><\/div>\n\n\n
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