If you’re looking to buy a home this Spring, getting prequalified for a mortgage can help you identify a realistic price point and make your offer more attractive to the seller.
The sound of lawnmowers humming and birds chirping can only mean one thing — springtime has arrived. But the weather isn’t the only thing heating up. Peak home buying season is upon us as well.
If you’re looking to buy a home this spring or summer, the time to get prepared and prequalified is now. Getting a mortgage prequalification letter from your lender is crucial as you shop for a home in the coming months.
The Benefits of Getting Prequalified For a Home Loan
A major benefit to getting prequalified is that it provides you with a realistic budget as you search for your future home. This helps you identify your price point and shop more efficiently. Many times, buyers get ahead of themselves and begin shopping for homes when they are unsure of what they can afford. Prequalification takes the guessing out of the equation and saves buyers time, energy and potential disappointment.
In the current real estate market, prequalification is essential, especially for first-time buyers. Being prequalified is not only smart but is sometimes required to make an offer on a home. In a multiple offer scenario, buyers without a letter of prequalification are often not taken seriously. Getting prequalified for your mortgage loan makes you more attractive to a seller, because it demonstrates that you’re a serious buyer with viable credit.
“One of the best tools a potential buyer can have in their toolkit is a letter of prequalification from their lender,” says Jeremy Holmgren, regional sales manager for Zions Bank Home Finance.