When you’re ready to start shopping for a home, it’s time to pause and get pre-approved first. A pre-approved buyer gains many benefits during the home shopping process. Here’s a quick look at just a few of the benefits you’ll gain from getting pre-approved first.
Benefit #1 – Competitive Advantage
About the only type of buyer you cannot compete with, when pre-approved, is the all cash buyer. A pre-approval tells the seller you’re serious and the deal won’t fall through due to your inability to get financing. They will have more confidence in your offer compared to a buyer’s offer without a mortgage pre-approval.
In addition, pre-approval puts you in a difference class of buyer. In 2014, less than 10% of buyers actually got pre-approved, which means you’ll be one of the few. This will help to make you more attractive to the sellers, which matters in a competitive market.
Benefit #2 – You’ll Be Shopping in Your Price Range
Without a pre-approval from a mortgage company, the amount of home you can afford is a bit of a guessing game. When you get pre-approved, you’ll know exactly how much you can afford, which eliminates the guesswork. This will also keep you from falling in love with a home you cannot afford.
Benefit #3 – Removes Some Stress from the Process
When you get pre-approved, you don’t have to worry. Basically, the mortgage company is telling you that you will be approved, as long as you meet the criteria within the pre-approval. They’ve already checked out your credit, your income and all the other necessities.
Benefit #4 – Your Agent Will do a Better Job for You
While a good real estate agent will do the best job they can for you regardless of getting pre-approved, when you’re pre-approved for a mortgage, it makes their job a bit easier. They know what you can afford and what you can get approved for. This eliminates the guesswork for your agent when they search for homes to show you.
Getting pre-approved before you start shopping for a home just makes sense. The smart buyer wants to know where they stand and doesn’t want to be disappointed when they find out they weren’t approved. Speak with your lender before you start looking at homes and the home shopping process will go much smoother.
If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. 704-650-5707 | AnnaGrangerHomes@gmail.com