One of the first steps in your home-buying journey is getting preapproved. To understand why it’s such an important step, you need to understand what preapproval is and what it does for you. Bank of America explains:
"Preapproval is as close as you can get to confirming your creditworthiness without having a purchase contract in place. You will complete a mortgage application and the lender will verify the information you provide. They’ll also perform a credit check. If you’re preapproved, you’ll receive a preapproval letter, which is an offer (but not a commitment) to lend you a specific amount, good for 90 days.."
Preapproval for a mortgage gives you the confidence to move forward with your home search. It allows you to budget accurately, understand the kind of home you can afford, and be taken seriously by real estate agents and sellers.
Having a preapproval in hand before you start your home search puts you in a position of strength when you are ready to make an offer. You can rest assured that the lender has already looked at your financial situation and qualified you for a loan. Sellers will be more likely to take you seriously when you have a preapproval letter, as they know you are a verified buyer ready to move forward.
At the end of the day, being preapproved for a mortgage in 2023 is an important step that every homebuyer should take. It not only gives you peace of mind but also helps you stay organized and on top of the process.
Contact us for guidance in navigating your journey to homeownership.