Whether you live in Nigeria or you're trying to find a property on the North America side, you want to make sure that when you finally find a property that's perfect for you, you won't lose out to another bidder. One of the ways that buyers can expedite the sale process and give themselves a leg up on the competition is to apply for mortgage pre-approval before they've even found the house they want. You can learn more about mortgage pre-approvals and how they can be of use to you here.
Normally when you apply for a mortgage you do so after you have found the house that you want and determined how much the owner wants for the property. The bank will look at your finances and assets and the house itself and make a judgment call as to whether you'll be able to make your payments if they lend you the money to buy the house. With a mortgage pre-approval, you're asking the bank to take a chance on you without even having the chance to look at the house or know what its worth.
With a mortgage pre-approval, you approach your bank as soon as you know you're going to start looking for real estate. They will look into your finances and determine the maximum amount of money they're willing to lend you and pre-approve you to borrow up to this amount once you find a house that you like. The pre-approved amount then becomes your house hunting budget and you narrow your search accordingly. If you find a home that exceeds your pre-approved amount, you will have to reapply with the bank for approval.
Because of the extra risk involved in agreeing to lend money before the bank knows what kind of real estate you're going to spend it on, generally only customers with excellent credit histories and a lot of business with the bank will be pre-approved for mortgages. First time home buyers and buyers who have been foreclosed upon or who have outstanding debts to other lenders will probably not be pre-approved for a mortgage unless they're able to get a reliable person with good credit to co-sign on the loan with them.
The major advantage in getting a mortgage pre-approval is that it takes the uncertainty out of home shopping. Whereas normally when you like a home you would have to insert a clause in your offer making the sale dependant on your ability to find financing, if you are pre-approved you don't have to do this, making your offer more attractive to sellers. This may even be enough to give you the edge over buyers who have made slightly higher offers with no guarantees. Once this is taken care of you can put your focus towards getting a proper inspection of the property before you finalize the sale. Don't take out that big mortgage loan without first confirming the house has no structural damage or leaking roof and pipes. If you want to buy a home in the State of New York, ask Rotondi Mold Assessors to inspect your property before you sign any dotted line.