Embarking on the journey to homeownership is an exciting adventure, but it comes with its fair share of challenges. One crucial step that often gets overlooked in the home-buying process is getting pre-approved for a mortgage. It can be awfully exciting to head to the open homes and start planning where you’ll put your furniture, however ensuring your finances are in place first is key. In this blog post, we'll delve into why getting a pre-approval should be at the top of your priority list when considering buying a home.
Know Your Budget
One of the primary benefits of getting pre-approved for a mortgage is gaining a clear understanding of your budget. A pre-approval involves a thorough assessment of your financial situation by a mortgage advisor - providing you with a realistic idea of how much you can afford to borrow and spend in total on a home. This not only saves you time by narrowing down your property search to homes within your budget, but also helps you avoid the disappointment of falling in love with a house that's financially out of reach.
Gain a Competitive Edge
The Kiwi housing market can be competitive, with desirable properties often receiving multiple offers. Even in the current slower market, we are still seeing people miss out on homes by not having their finances in order. Having a pre-approval in hand gives you a significant advantage as a buyer. Sellers are more likely to consider offers from pre-approved buyers because they know these individuals have already taken the necessary steps to secure financing and there’s less chance of the deal falling through due to finance.
In a fast-paced real estate market, time is of the essence. With a pre-approval, you're well-positioned to move quickly when you find the right property. Since much of the groundwork has already been done, the formal mortgage approval process is much quicker, allowing you to make an offer and, if accepted, close the deal quicker than if you had to go through the entire process from scratch. It also allows you to purchase a home via auction, which is still proving to be a popular method of sale in Christchurch and the wider Canterbury region.
When purchasing a property, being prepared is key to a successful home-buying experience. Getting pre-approved for a mortgage is a strategic move that not only streamlines the process, but also positions you as a serious and qualified buyer. Take the time to consult with a mortgage advisor and gain a clear understanding of your financial standing. Give the team at Better Choice Home Loans a call today and let’s get you on the path to home ownership with confidence.