One important step is getting preapproved for a mortgage before you start your search. Vashti Hackert, an expert agent in the Long Island real estate market, always tells her clients to do this.
Why? Well, Vashti’s seen firsthand how much it helps buyers. Here are four reasons why getting preapproved is a smart move:
1. Knowing Your Budget
One of the most important reasons to apply for a mortgage before searching for a home is to give yourself a clear picture of your financial situation and how it impacts your ability to make a purchase. By applying for a mortgage in advance, you’ll know what to expect going into the home search because a lender will have already assessed your finances to determine a mortgage rate and the loan amount you can receive.
With this in mind, you can search for homes with the confidence that you can afford to move forward with the sale once you find an awesome property.
2. Building Trust with Agents
Buyers who contact real estate agents after already applying for a mortgage are taken seriously from day one. When you walk into a real estate agent’s office after having already applied for a mortgage, they’ll see that you have a sincere interest in making a purchase and will know what your price range is to determine which homes they can show you. You’ll also be more likely to find stronger representation since busy agents who are pressed for time in competitive markets will be more inclined to accept you as a client if they know there’s a high chance of closing the deal.
3. Your Power Position Will Increase
Getting preapproval will put you in a position of power as you inch closer to a sale. With a letter from your lender already in hand, sellers will see that not only are you genuinely intending to make a purchase but that you’re capable of doing so as well. This will shift the tides in your favor by clearly indicating that you’re a buyer who means business and is ready to close a deal.
4. Faster Closing
Pre-approval speeds up the final steps of buying a home. Since your financial information is already sorted by the lender, you don’t have to scramble for documents at the last minute. This saves time and reduces the chance of delays that could mess up the sale. With everything in order, the closing process goes smoother, and sellers feel more confident about sealing the deal. In the end, pre-approval gets you into your new home faster, without unnecessary hassles.
Before you officially begin your home search, it’s essential to prepare in the best way possible by applying for a mortgage. By knowing what to expect from your financial situation, showing agents you’re a serious buyer, increasing your power with sellers on offers and negotiations, and speeding up the closing process, the benefits of getting a mortgage preapproval make it an essential first step toward a smooth sales process.
If you’re looking to buy a house on Long Island, Vashti Hackert can help. She knows the market inside and out and can help you find the perfect home. So if you’re ready to start your real estate journey, reach out to Vashti today at 516-263-8870!