Should you get a home mortgage before or after you find a property?
Hello, my wonderful readers!
As a stay-at-home mom for the last several years, I've been fortunate enough to be fully involved in the lives of my precious kids. And recently, I'm happy to share that I've joined the amazing team at Venture Realty Group, LLC in Cabot as a Realtor!
Guiding clients through the process of selling or buying property brings me immense joy, and I'm thrilled to share my knowledge with all of you! Today, I'd like to discuss a frequently asked question in the world of home buying: Should you get a home mortgage before or after you find a property?
Securing a mortgage is a critical step in the home buying journey, and timing plays a vital role in ensuring you find the perfect home within your budget. Let's weigh the pros and cons of getting a mortgage before or after finding a property.
Getting A Mortgage Before Finding a Property
Pros:
1. Pre-approval Advantage: Obtaining mortgage pre-approval indicates to sellers that you're a serious and committed buyer. This could make your offer more appealing, especially in a competitive market.
2. Budget Clarity: With a pre-approved mortgage, you'll know exactly how much you can afford. This helps you avoid falling in love with a property that may be out of your financial reach.
3. Faster Closing: Already having a mortgage in place can potentially speed up the closing process since the necessary paperwork has already been completed.
Cons:
1. Expiration Deadline: Mortgage pre-approvals usually come with an expiration date, typically within 60 to 90 days. If you don't find a property within that timeframe, you may have to go through the process again.
2. Limiting Options: Some buyers assume that they can only look for properties within their pre-approved mortgage amount, potentially missing out on negotiating opportunities.
Getting A Mortgage After Finding a Property
Pros:
1. Market Research: Searching for a property without having a mortgage in place allows you to explore different areas, home types, and price ranges. This can help you get a better sense of what your priorities are before committing to a loan.
2. Greater Flexibility: If your financial situation changes during your property search, you may be able to adjust your mortgage preferences without being locked into a specific loan amount or term.
Cons:
1. Slower Process: Without mortgage pre-approval, the time between making an offer and closing can be longer. This may lead sellers to consider other offers from pre-approved buyers.
2. Emotional Strain: Finding the perfect property only to have your mortgage application denied can be heart-breaking. Applying for a mortgage after finding a property can result in disappointment if the financing doesn't work out.
So, what's the best approach? Given the competitive market and the advantages of knowing your budget up front, I recommend starting the mortgage process before diving into your property search. Of course, every situation is unique, and it's essential to find the method that works best for you.
If you need guidance on securing a mortgage or finding the perfect property, I'm here to help! Feel free to reach out to me anytime at 501.231.7775 (cell), 501.259.8437 (office), or via email at Angelakbreality@gmail.com. Let's make your dream home a reality!
Warmest regards,
Angela Benight, Venture Realty Group