Alexandria, Lorton, Woodbridge Virginia Real Estate: Top 5 Reasons to Get Pre-Approved for a Mortgage Loan

Shopping for your next home is an exciting adventure. Like most prospective buyers, you have been searching the Internet for quite some time and you finally found the perfect house. In fact, you found five of them! All you need to do is call a REALTOR® and start previewing.

But not so fast…

Before previewing homes, you need to be pre-approved for a mortgage loan. Your REALTOR® can suggest a reputable lender with whom you can obtain a pre-approval letter or you can select a lender of your choosing. Why do you need a pre-approval letter? Here are the top 5 reasons you should get pre-approved for a mortgage loan before previewing homes.

1. Your mortgage loan determines how much house you can afford. Knowing how much house you can afford is the key to house hunting. When you have an established price point in mind, you can become more focused and efficient at finding your dream home. If you are considering buying a home in the coming months, securing a mortgage loan is the first step! This will allow you and your REALTOR® to make effective use of your time by focusing solely on the homes that are within your price range.

2. Your mortgage loan determines your down payment requirements. There are multiple types of loan packages available. The type of mortgage loan you choose determines how much money(if any) is required for your down payment. To be certain that you meet the loan down payment requirements, it is extremely important to obtain your pre-approval letter prior to beginning your house hunting activities.

3. Your mortgage loan determines your reserve account. Most loan packages require you to maintain a certain amount of money in a reserve account or bank account. This amount ensures the lender that you did not deplete your funds in order to qualify for the loan. This also ensures the lender that you have immediate funds available to make the initial payments on your loan.

4. Your mortgage loan proves that you have the financial resources available to purchase the home. When submitting an offer to the sellers, your pre-approval letter ensures the sellers that you have the financial resources available to purchase the home. Without a pre-approval letter, the sellers will likely be unwilling to commit to selling their home to you as they have no way of verifying your financial strength.

5. Your mortgage loan indicates your readiness and commitment to buying a home. When selecting a REALTOR® to assist in your house hunting efforts, REALTORS® will gladly commit their time and resources to assisting a buyer who willingly obtains a pre-approval letter. This important step shows your readiness and commitment to the home buying process. This also helps the agent to efficiently and effectively guide you through the process of buying your home. If you are unwilling to take the steps needed to determine your financial position, most REALTORS® will be unwilling to commit their time and resources into helping you find your dream home. Your REALTOR® can only be as committed to the process as you are!

If you are interested in buying or selling real estate in Alexandria, Lorton, Woodbridge or any of the surrounding areas in northern Virginia and Maryland, please contact me for assistance. My specializations include first-time home buyers, home sellers, luxury homes, short sales, foreclosures, relocation, and divorce.