5 Reasons to Get Preapproved for a Mortgage
If you’re thinking about buying a home, getting preapproved for a mortgage might not sound like the most exciting part of the journey—but it’s one of the smartest moves you can make. Whether you’re a first-time buyer or a seasoned homeowner, a mortgage preapproval gives you clarity, confidence, and a competitive edge in today’s housing market. Visit our Home Loan Center to Apply Now!
Here are five compelling reasons why getting preapproved should be your first step:
1. Know Exactly What You Can Afford
A preapproval helps you determine how much house you can comfortably afford based on your income, credit, and financial situation. Instead of guessing or relying on online calculators, you’ll get a realistic price range to focus your search and avoid falling in love with a home that’s out of reach.
2. Boost Your Bargaining Power
In a competitive market, preapproval gives you a serious advantage. Sellers and real estate agents are far more likely to consider an offer from a buyer who already has financing lined up. It shows you’re prepared, committed, and financially capable—which can make your offer stand out in a sea of hopeful buyers.
3. Speed Up the Homebuying Process
When you’re preapproved, much of the paperwork is already taken care of. That means once your offer is accepted, you can move faster through the mortgage process. In a hot market, every day counts—and preapproval can save you valuable time.
4. Avoid Surprises Later
A preapproval includes a full review of your credit report, income, and financial situation. That means you’ll uncover any potential red flags early—before they can slow down your loan approval or derail your homebuying plans. It’s a proactive way to prevent unexpected bumps in the road.
5. Shop with Confidence
Knowing your preapproved amount brings peace of mind. You can house-hunt with purpose, avoid unnecessary stress, and make decisions with confidence. Plus, it’s an empowering step that shows you’re ready to move forward when you find the right home.
Getting preapproved for a mortgage isn’t just a smart financial step, it’s a powerful move that sets you up for success in today’s competitive housing market. From knowing your budget to gaining an edge with sellers, preapproval empowers you to shop with confidence and act quickly when you find the right home.
Ready to Get Started?
At AGCU, we make the preapproval process simple, secure, and stress-free. Our mortgage team is here to walk you through every step. Click Here to start your preapproval today and take the first step toward finding your dream home:
Download our FREE Mortgage Checklist
Getting preapproved for a mortgage isn’t just a smart financial step, it’s a powerful move that sets you up for success in today’s competitive housing market. From knowing your budget to gaining an edge with sellers, preapproval empowers you to shop with confidence and act quickly when you find the right home.
Banking With A Purpose
Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose
Frequently Asked Questions About Mortgage Pre-approval
How far in advance should I get preapproved for a mortgage?
It’s best to get preapproved for a mortgage at least 1–3 months before you start house hunting. This gives you time to understand your budget, correct any issues on your credit report, and position yourself as a serious buyer when making an offer.
What is the minimum credit score to buy a house in Missouri?
Most lenders in Missouri look for a minimum credit score of 620 for conventional loans. However, government-backed loans like FHA may allow lower scores. AGCU works with members to find the right mortgage option based on their unique financial situation.
Does getting preapproved hurt your credit?
A mortgage preapproval typically involves a hard inquiry on your credit report, which may cause a small, temporary dip in your credit score. However, this impact is usually minimal and well worth the benefits of being preapproved when house hunting.
Will I lose my deposit if I am denied a mortgage?
You could lose your earnest money deposit if you’re denied a mortgage; especially if your purchase contract doesn’t include a financing contingency, which protects you in case your loan falls through. Without this safeguard, a denied loan could mean walking away from a home and your deposit.
That’s why getting preapproved before making an offer is so important. A mortgage preapproval gives you a clearer picture of what you can afford and shows sellers you’re a serious, qualified buyer. It also reduces the risk of loan denial after your offer is accepted. At AGCU, our preapproval process helps set you up for a smoother, more secure homebuying experience from day one.
