The home buying process is quite extensive, with several steps along the way. There is an essential first step that should not be overlooked if you are just beginning your home search. However, many buyers today still procrastinate with it, and it ends up costing them. Read on and discover a few of the top reasons why buyers should get preapproved for a mortgage right away.
It shows sellers that you are a serious buyer.
Sellers are more inclined to entertain interest from those who are preapproved for a mortgage. This is because a preapproval letter demonstrates that they are serious buyers. Before sellers can even entertain offers, they need to know that you can afford the home.
You can lock in an interest rate.
Interest rates are currently at historically low rates this year. One of the most significant benefits of getting preapproved on a mortgage is that many lenders allow you to lock in an interest rate with your preapproval. Because mortgage rates change all the time, you do not want to wait to get preapproved if you see a golden opportunity in front of you.
Allows you to act quickly.
Although getting a preapproved is typically straightforward and easy, do not procrastinate to get preapproved. Homes can fly off the market the same day in which they are listed. If you happen to find a home that you love, you do not want to be in a position where you have to wait to get preapproved. As said before, sellers are more inclined to entertain offers from preapproved buyers than those individuals who haven’t taken the necessary steps.