The time has come for you to buy a home and put down some roots in a Philadelphia neighborhood. You’ve identified how much you can afford and how much you want to spend along with having an idea of what type of house you like. Why not get pre-approved and move into your dream home sooner than later? Pre-approval for a mortgage lets you know how much house you can buy makes you more attractive to a seller and increases your chances of getting the home. Here’s why it’s a good idea to get pre-approved for a mortgage through a Philadelphia mortgage company.
More Negotiating Power
Mortgage pre-approval gives you an advantage over those who haven’t gone through the process by making you more attractive to a seller. A seller knows that they won’t have to wait for the buyer to get financing and is more likely to get the money for the sale sooner than later. In some cases, a seller may be highly motivated to sell their home quickly and be more willing to negotiate for a lower price.
A seller is sometimes seen as having the upper hand because they have what the buyer wants: a house. But prices are rarely written in stone and there’s always room for making offers and counter-offers. Being pre-approved has the potential to shorten the negotiating period because the seller knows how much is in your pocket at the time of the offer. The seller can always make the decision to take your offer because the financing is all but guaranteed.
Mortgage Pre-Approval Makes Your Offer More Attractive
Sellers typically receive multiple offers on a home throughout the course of its sale period no matter what the market conditions are. It’s up to the seller to accept an offer that meets their criteria, but one thing that is at the core of every sale is the financing. A buyer who waits to get financing after making an offer is going to slow down the closing process and make the seller wait that much longer to get their money.
Pre-approval means that the buyer has had their credit checked and their income investigated done by a Philadelphia mortgage company. The only thing that hasn’t been done is underwriting the mortgage. A seller may be more favorably disposed to sell to someone who’s been pre-approved for a mortgage because the buyer is demonstrating that they’re ready to go through with the financing and it won’t take as long as someone who has to apply. It’s tough for non-pre-approved buyers to compete with pre-approval for this reason alone.
Having the pre-approval as well as knowing these 3 things will help increase your chances of getting the home you truly want.
Gives a Seller Peace of Mind
Selling a home isn’t always a straightforward process. Any number of things can go wrong during the closing period such as the title isn’t clear, there are liens on the title, and a buyer can run into difficulty with getting financing. In the event, a buyer winds up getting into trouble during the financing stage, the home may not close on the date that’s been set, or it may have to go back on the market until a qualified buyer comes along. That can make it more difficult for the seller to move into their next home.
A buyer who has a letter of pre-approval is insurance against the house falling out of the contract due to a lack of financing. Pre-approval can’t take care of the other issues that may arise during the closing, but a seller can rely on the buyer getting the requisite funding to buy the home. It’s a form of insurance for both buyer and seller.
Buying a home is exciting and stressful. Getting pre-approved for a mortgage reduces the stress because you know how much home you can buy along with making yourself stand out to sellers. Pre-approval increases your chances of getting the home of your dreams and reducing stress levels when you go under contract to buy.