When looking to buy a home quickly, the smart thing to do is to get a preapproved letter from a mortgage lender. To the seller, this means that you are serious about the purchase, causing them to take you a lot more seriously. This is a great advantage to have, especially if other buyers are competing with you. In the end, it can be the difference between securing a home or walking away empty-handed.
That being said, we want to talk more about preapproved letters—why it’s so important, how long it will take to get one, and more.
Why Are Preapproved Letters Important?
As mentioned in the introduction, a preapproved mortgage letter is essential simply because it proves you have gone and looked through your finances. To the seller, this means that you are serious about the purchase and have figured out that you can buy the home. This is a big benefit to you, especially against another buyer that has yet to have a mortgage letter to show to the seller.
How Long Does It Take To Get a Preapproved Letter?
If you initially thought that a preapproved letter takes weeks to get, you’re mistaken. Online inquiries typically take only a few minutes to complete, and you might find yourself waiting for approximately a week to get your letter. However, if you are lucky, you might just get a response within the same day!
Regardless of how long it takes, you should be applying for a preapproval mortgage letter as soon as possible. This way, you can get the letter needed to secure the home you are interested in buying a lot earlier.
What Happens If the Preapproved Amount Is More than the Home Price?
Sometimes, there’s a chance that you might be preapproved for more than you need to buy a home. While there is certainly nothing wrong with this, be wary that the seller might try and take advantage of that amount. If you want to fix the amount, you can contact the lender to readjust the letter amount.
How Can I Make Sure That the Preapproved Amount Aligns with My Budget?
One worry you might have is paying more for a large preapproved amount that you may not necessarily need. To ensure that the amount stated on the letter isn’t the maximum amount you’re eligible for but the amount you’re comfortable paying, work closely with the lender. This way, you can strike a balance between how much you qualify for and how much you are willing to pay.
Simply put, if you are looking to buy a house, do yourself a favour and get preapproved for a mortgage. This way, not only do you know that you qualify for a mortgage when you do want to buy a home, but you can realize how much you qualify for to help you pick the suitable homes that fit your budget. That said, always spend the time to look for professional and trustworthy lenders to work with and compare different mortgages against each other. In doing so, you stand a higher chance of being qualified for the right mortgage that helps to purchase your home and save as much money as possible.
Ottawa Mortgage Services provides mortgage agent services to help first-time homebuyers, commercial clients, and self-employed individuals get the mortgage solutions they need and more. Apply with us today and get the mortgage you need!