Posted On: April 5, 2022 by Farmers Trust & Savings Bank in:
Author: LeAnne Hamrick, Real Estate Loan Officer
There are many benefits to getting prequalified when purchasing a home in today’s home buying market. Getting prequalified means, you have completed a loan application with a mortgage lender, and they have evaluated your income, liabilities, and credit report to help determine what you can afford. Plus, being prequalified could give you the extra advantage to get your dream home before another offer is on the table.
Advantages to getting pre-qualified:
- Knowing how much home you can afford
Buyers too often begin their search for the perfect home without knowing how much home they can truly afford. It pays to meet with a local lender. Getting prequalified lets you know you are looking in the right price range, and it saves you time and potential disappointment if you find out you are home shopping at a higher price than your budget allows.
When you apply, having an idea of a purchase price range and/or what you’re comfortable paying each month for a mortgage payment will help the lender determine a comfortable purchase price range for you.
- Confidence and peace of mind
Because you have already met with the bank and know your purchase limits, you can confidently place offers with the peace of mind knowing you can back up your offer. You are also able to negotiate with ease because you know your limits, especially since negotiations typically happen within hours. In times when homes are selling quickly, your offer may be superior to others because you are already prequalified.
- Head off potential problems
Not everyone gets approved their first time applying for a home loan. By starting the prequalification process early, your lender can assist you with options on how to improve your credit in order for you to become a qualifiable borrower. This gives you a head start to make the changes necessary, so you can purchase when you’re ready.
- Smoother Process
Purchase transactions can move quickly, so spending time with your lender before placing an offer will help you feel more confident in the process which makes for a smoother transaction. They can help explain lending terms and offer the best options for you when purchasing a home. The more time you have to digest all of this, the better you’ll feel about the home buying process.
Often homebuyers think getting pre-qualified is only for first time homebuyers; however, repeat homebuyers can benefit from getting prequalified as well.
At Farmers Bank we want to save you time and take the stress out of the home buying process. Contact us today to start the pre-qualification process to your next home!
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