Why Pre-Approval Should Be Your First Step Before Buying in WA, ID, CO, or OR

Published:
December 17, 2019
Last updated:
October 30, 2023
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Why should pre-approval be something to do before you start your search for a new home? This video will show you why this step is so important.

Why Pre-Approval Should Be Your First Step

There are a number of reasons why getting pre-approved for a mortgage should be the first thing you do before you start the search for your new home.

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Get a Competitive Edge

Houses are selling quickly, and sometimes competition is driving up multiple offers. When there are many buyers on the scene, there are more people that you will have to compete against, so you’ll want to put your best foot forward, and an approval letter is one of the best ways to do that. Pre-approval gives you a competitive edge when you enter the offer stage.

Show Sellers You’re Serious

Getting pre-approved for a home loan in WA, CO, OR, or ID shows sellers that you are serious about buying and ready to make a move. Sellers would prefer to work with buyers who are financially prepared to make a deal rather than wasting their time on someone who may be interested in buying the home but won’t be able to secure financing.

Know What You Can Afford

Do you know how much you can actually afford when buying a home? While you might have a good idea, it’s likely not entirely accurate. A pre-approval will help you know what you can afford to spend in the homebuying process. That way you can focus only on properties that fall within your budget and save time that would be wasted looking at homes that you can’t afford.

Get Some Peace of Mind

You may have an idea of what you can afford in a home purchase, but until you speak with a mortgage lender and they’ve assessed your financial situation, you don’t really know for sure. It can be a little daunting to start looking at homes and even potentially falling in love with one that you want to put an offer on, only to find out later that you can’t secure financing to cover the purchase price.

That can be pretty stressful going into an offer without the peace of mind knowing that you’re capable of getting a specific loan amount from a lender. But by getting pre-approved first, you can rest easier knowing that your current financial situation can support the home purchase.

Just keep in mind that your pre-approval letter expires after a certain amount of time, and any changes to your financial situation could alter your final mortgage approval. That’s why it’s important not to make any major changes – such as changing jobs or taking out another loan – before final approval has been granted.

Speed Up the Final Mortgage Approval Process

Getting pre-approved means that you’ve already taken some of the steps needed towards getting final approval. Once you make an offer on a home and the seller accepts, the final mortgage approval process can take place. And because your lender already has much of the important details of your financial situation and has calculated a loan amount, final approval can be easier and faster to obtain, as long as no major changes have been made to your financial situation, as mentioned earlier.

Let’s connect so you’re ready to make an offer when you find your dream home!

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Sammamish Mortgage is a local lending firm serving the broader Pacific Northwest region including Washington state, Idaho, Colorado, and Oregon. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have any questions or are ready to apply for a home loan.

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