The Importance of Preapproval
- posted 2.23.2015
- Nicole Johnson
- Personal Finance
Before you start shopping for your dream home, you need to make sure it's within your budget, and a underwritten preapproval gives you the assurance you need to know how much you can afford. At New American Funding, we believe in creating relationships, starting with this complementary service, whether you need an existing home buyer loan, a first-time home buyer loan, or to refinance your home mortgage.
A preapproval gives you the confidence to look for a new home, know how much you qualify to borrow, and understand the different types of mortgages we offer, including Fixed Rate Morgtages, Adjustable Rate Mortgages, VA Home Loans, or more.
Find a Home That Fits Your Budget
There is nothing more frustrating than finding out the home you love is more than you can afford. With a preapproval, you know exactly how much you can spend even before looking at homes on the market.
Be Taken Seriously as a Home Buyer
Right now, the housing industry is a buyer's market. There are many homes to choose from, but you run the risk of competing with other buyers who are also interested in the home you choose. Creating a competitive advantage over other buyers is where we can help. Your commitment, through a preapproval, to the home buying process will show Real Estate Agents and buyers that you're serious.
Get the Advantage Over Competing Offers
Unprepared buyers will make offers without a preapproval, but when you get a strong preapproval, you can immediately compete with these buyers who have not considered their home financing options or know their limits. Buyers who are preapproved have more than an idea of what is attainable, and they can back it up with an in-writing offer.
Negotiate to Get the Price You Want
When you have a preapproval in hand, negotiating becomes easier. Buyers can shop and make an offer on a home as if the money is in your pocket. Preapporval provides virtual cash to home buyers, eliminating any questions on how much money will be required or the next step in the process.
After you have successfully made an offer on a new home, a mortgage professional will assist you throughout the rest of the buying process and will ensure a fast and convenient closing.