Many home buyers think they should find a real estate agent and a house first, then figure out the loan later. However, getting pre-approved for a mortgage is a critical step and something that should be done much earlier in the process. I’ll give you four reasons why:

1. Understand your numbers. When searching for a house, you might think based on house prices, like having a budget of $500,000 or $600,000. But in reality, we don’t think in terms of house prices, but in terms of monthly payments. Knowing your numbers means identifying how much you can afford based on your monthly budget and being clear on the actual cost, including the principal, interest, taxes, and insurance. You’ll also get a better idea of which homes are within your budget.

2. Uncover and address surprises. During the pre-approval process, a mortgage professional will verify your income and assets and check your full credit report. You might find some surprises that you didn’t know about along the way, like transactions that impacted your credit rating. This process will help you identify, clean up, and improve your credit score, potentially securing a better interest rate.

“Many buyers end up viewing fewer homes because they have ruled out homes that don’t match their needs and budget.”

3. Show you’re a serious buyer. Many sellers and real estate agents prefer working with pre-approved buyers because it shows you are serious about buying a house. It takes a lot of effort for sellers and agents to prepare the house for showings, and finding out that you are not a serious buyer can be frustrating. Being pre-approved saves time for everyone involved and shows you are committed and financially capable, increasing your chances of having your offers taken seriously.

4. Be prepared to act quickly. The housing market can move fast, and you might find your ideal house much quicker than you think. Being pre-approved means you are in a stronger position during time-sensitive situations or multiple offer scenarios. If you’re just starting with the mortgage process while others move ahead,

Remember that many buyers end up viewing fewer homes because they’re looking online and have ruled out homes that don’t match their needs and budget. If you need help getting pre-approved, don’t hesitate to reach out by calling me at (503) 522-0090. As a Realtor, I can connect you with trusted lenders who will be the best fit for your situation.