Yes. Getting approved for a mortgage should be your very first step, well before you attend an open house or tour a property with a real estate agent.
While it is tempting to start house-hunting immediately, looking at homes without a formal mortgage pre-approval puts you at a severe disadvantage. Here is exactly why you need to apply first:
1. You Need to Know Your True Budget
Online mortgage calculators provide estimates, but they do not account for the specifics of your credit history or debt-to-income ratio. Applying for a mortgage tells you exactly how much you can borrow and what your monthly payments will be. This prevents you from falling in love with a house you cannot afford.
2. Sellers Require Proof of Financing
The Raleigh real estate market is competitive. When you submit an offer on a home, the seller needs proof that you have the funds to back it up. If you submit an offer without a pre-approval letter, sellers will likely ignore it in favor of buyers who already have their financing secured.
3. It Speeds Up Your Closing Timeline
Applying for a mortgage early means you complete the heaviest paperwork upfront. Your loan officer already has your tax returns, bank statements, and W-2s. Once your offer is accepted, your loan moves straight into the final underwriting stages, allowing you to close faster.
What is the difference between a Pre-Approval and a Pre-Qualification?
When applying, make sure you get a Pre-Approval.
- Pre-Qualification: A basic, unverified estimate of what you might borrow based on self-reported numbers.
- Pre-Approval: A lender verifies your financial documents and pulls your credit to give you a firm commitment. Sellers want to see a pre-approval.
How to find out how much I can afford?
At Raleigh Mortgage Group, we make the pre-approval process straightforward and fast. Contact us today to secure your financing so you can start shopping for your new home with confidence.