Three Reasons To Get Pre-Approved Early
The real estate market is officially heating up here in Omaha. One of the questions we’ve been getting asked a lot lately is when to get a mortgage pre-approval in Omaha. Generally, it’s best to get pre-approved before you begin looking at homes. We recommend getting pre-approved as far in advance as six months to a year.
We know what you’re thinking – you’ll just look at homes online. Then when you’ve found some that interest you, you’ll reach out to us. But first, hear us out on all of the benefits of getting an early mortgage pre-approval in Omaha.
Know What You Can Afford
One of the biggest advantages to getting pre-approved before you begin house hunting is that you know what you can actually afford. Sure, we all think we have an idea of how much house we can afford, and often it’s correct.
But too often, clients assume they will qualify for a mortgage similar to one their friend or colleague qualified for, which isn’t always the case. The best way to find out how much you can afford is to get pre-approved ahead of time. Then if you aren’t quite where you want to be financially, you have time to strategize how to save more. Get pre-approved before house hunting to know your price range. Click To Tweet
On several different occasions, we’ve also had clients discover issues on their credit reports while seeking a mortgage pre-approval. These issues can take weeks, even months, to resolve and can greatly affect the type of loan and interest rate you qualify for. It’s always best to resolve those issues right away so they don’t have a negative impact on your credit score.
Get Taken Seriously
Regardless of the season, there are always a lot of people looking at houses. Some are genuinely in the market for a new home, while others just like exploring different homes.
To be taken seriously by both your real estate agent and potential seller, you need to be pre-approved.
We’re not trying to say that your agent won’t show you homes if you aren’t pre-approved, because they may still. But being pre-approved allows your real estate agent to do their job better. With an understanding of your actual price range, they can show you homes that fall within that range.
When it comes to putting in an offer, most sellers won’t even consider an offer if the potential buyer isn’t pre-approved because they have no way of knowing you are financially capable of purchasing the home. So, if there are multiple offers on the table, the buyer that isn’t pre-approved is almost never chosen.
On average, it takes 45-60 days to close on a home, from when the purchase agreement is accepted to closing. We’re often able to help pre-approved buyers close in less time than buyers who aren’t. Why, you might ask? Because we’ve already received and verified their information, meaning we only need to collect the most recent documentation, if even that.
The way we see it is, if you’re going to have to do it anyway, why not get it over with in the beginning? Rounding up papers for a mortgage pre-approval in Omaha isn’t anyone’s favorite task, but once it’s done you’re able to move onto other things, like choosing the perfect furniture for your new home!