Getting pre-approved for a mortgage is a crucial step on the path to buying a home, and one that every shopper should look into when they get serious about making a purchase. Pre-approval allows you to get a strong idea of the funds you'll have available to spend on your home, makes it easier to plan your budget, and shows sellers that you're a serious buyer. But it's important to be prepared before speaking with lenders, so when is the right time to get pre-approved? Our real estate agents are here to help, with a guide to planning for mortgage pre-approval when shopping for a home.

• Why Pre-Approval Is So Important
  When you're competing with other buyers for Atlanta homes for sale, you want to do everything that you can to make your offer stand out from the pack. Getting pre-approved for a mortgage shows sellers that you have the necessary funds available to back your offer, and gives seller's agents a reason to take your offers seriously. From your perspective, pre-approval provides a firm range for how much home you can afford and allows you to start planning for your purchase with confidence. Overall, a buyer with pre-approval is in a much better position to close the deal.

• When Is the Right Time to Get Pre-Approved?
  While there's not a set deadline for when you should think about pre-approval, it's wise to do it before you get serious about making offers, but after you've already made sure that your credit score and finances are in great shape. The better your credit score, the easier it is to get pre-approved and secure the best possible terms for your mortgage.

• Getting Your Credit in Shape Before Pre-Approval
  Before you get pre-approved, take the time to carefully review your credit score by requesting your free annual report from the three major credit bureaus. Review your credit report for any disputed charges or other inconsistencies, and have any issues corrected. If you have old, outstanding debts, work with your creditors to create a payment plan and get those debts paid off. Once your credit is in great shape, avoid opening new lines of credit or making big purchases until after you've purchased your new home. 

• Making Sure Your Finances Are in Order
  In addition to checking your credit, you'll want to make sure that you're prepared financially before getting pre-approved. Start by saving for your down payment, while planning out what your budget will look like both leading up to and after purchasing a home. It's also a good idea to collect key documents that you'll need for pre-approval, like W-2s, recent pay stubs, tax returns, and bank statements. The more prepared you are going in, the easier the process will be.

• Can You Get More Than One Pre-Approval?
  Given the work involved in getting pre-approved, it's best to wait until you're serious about shopping for a home. Depending on your location, your pre-approval will typically be valid for between 90 and 180 days. If time on your pre-approval is running out, you may be able to renew it by providing updated financial documents, rather than starting from scratch. You can also seek pre-approval from multiple lenders, to get a better idea of what options are available for your loan.

Whether you're already pre-approved or you've just started looking at the market, our team is here to help you find your next home. Contact us to buy and sell homes throughout the Atlanta, GA area.