Why Get A Pre-Approval?
You, Your Agent, and the seller all benefit from your pre-approval.
You: The step you take in applying for mortgage pre-approval is an incredibly important one and thankfully doing so is relatively simple. This step begins the process of formally applying for a mortgage and it gives everyone involved, especially you, an understanding of what will be needed to borrow money needed to purchase.
Your Agent: Once your agent knows what your financial parameters are, they can then spend more time looking for houses that are more likely to work for you and not waste your time.
The Seller: If you want to strengthen your bargaining position, and stand out amongst multiple offers get pre-approved! Looking at it from a sellers perspective: If there were two offers for your house, one which is from a fully pre-approved buyer and the other from a buyer who has yet to get around to doing so, which offer would gain the most attention? Even if the pre-approved buyer’s offer was $1,000 less, would you want to take a chance on the buyer that may not be qualified? When the seller is evaluating offers being pre-approved gives you an advantage above those who have not.