Finance

5 Reasons to Get Pre-Approved for a Mortgage

Increasing your credibility with home sellers is just the beginning.

Don Milne Feb 8, 2018

Tired of looking at the same four walls? Do you need a new place to call home for your growing family? Before you start visiting those open houses and online home tours, it makes sense to get pre-approved for a mortgage. Here are five reasons why:

1. Getting pre-approved will help you focus your house hunting efforts.

Once you are pre-approved, you won’t waste your time considering homes outside of your price range.

2. Getting pre-approved will increase your credibility with home sellers.

Home sellers don’t want to waste their time dealing with house hunters who don’t know whether they can qualify for a mortgage. Once the sellers see that you are pre-approved, you will receive the attention given to a serious buyer.

3. Getting pre-approved and A DICE.

When you are looking to buy a home, you are most likely going to be asking a lender to come up with $100,000 or maybe much more to buy the home for you and then trust you to pay it back. The lender is rolling the dice that you won’t walk away leaving them stuck with a house it has to get rid of. You are getting pre-approved so the lender feels good about lending you money.

To avoid getting burned, a lender is going to look for five things you can remember by thinking of A DICE:

  • A – Assets. You are going to need enough money for a down payment and closing costs.
  • D – Documents. Bring your driver’s license and social security card so the lender has proof you are who you say you are.
  • I – Income. Show proof of income. The lender needs to know how much you can afford on your mortgage.
  • C – Credit Score. The lender needs to see that you can responsibly handle credit.
  • E – Employment. You need to show you are gainfully employed. Stable income is important.

4. Getting pre-approved is a chance to get your ducks in order.

After the bank has reviewed your qualifications, you may find you are not ready to buy that home yet. The pre-approval process lets you know where you need to shore things up so you can come back later and get the home and mortgage you are looking for.

5. You don’t need to be an expert to get pre-approved.

The first time you look to buy a home there are lots of needed steps. Don’t feel like you have to be a know-it-all to succeed. The mortgage loan officer you work with has the expertise to lead you where you need to go. After all, the bank only makes money if you get approved to proceed with the mortgage loan.

Have more questions about getting pre-approved for a home loan? Call 800-727-8893 toll-free to speak with a Zions Bank mortgage loan officer today.

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