Why Every Home Buyer Needs a Pre-Approval Before Home Shopping
Shopping for a new home is fun, so it’s natural to get excited during the process. In fact, some people find that looking at houses online is their favorite pastime, even when they’re not interested in buying a home. Hence, most buyers begin their home-buying journey with an online search for available homes.
However, what most of them don’t realize is that they’re skipping a crucial step that could save significant time and money.
The important step that many home buyers skip is speaking with a reputable lender to obtain pre-approval. But what does this mean?
Essentially, it means a lender will examine your current financial standing to help you establish a mortgage budget that you can afford. The professional will also explain each loan option that’s available to you, allowing you to make a well-informed decision as to which one works best for your needs. Often, there are special deals available for certain groups of buyers. Typically, these include veterans, first-time buyers, and those who require down payment assistance.
This information is vital because it gives you a price range for houses and tells you if you need to prepare a down payment and how much you’ll need. Moreover, having a pre-approval before home shopping helps estimate your monthly mortgage payments and makes the home-buying process easier and more efficient.
Working with a lender also helps you understand how changing interest rates can affect your budget, and it’s worth noting that these rates can change daily. Working with an experienced lender means they can help you lock in the best possible rate and ensure that you have the most purchasing power available to choose your new home.
Perhaps the most significant advantage of having a pre-approval beforehand is that when you find that perfect house and want to make an offer, your agent will provide the seller with this letter of pre-approval. This tells the seller that you are a serious buyer with the finances to back up your bid. And in today’s competitive market, many sellers won’t even consider an offer that’s not backed by a pre-approval.
“It’s expected in the current market that most houses we list for sale in the Columbia Region will have multiple offers attached to them,” said Chad Wilson, team leader at Heartland Network-Mid MO. “One of the first things our sellers look for is if the buyer has a pre-approval and if that approval was made by a lender with a stellar reputation. They won’t waste their time considering an offer if that quality pre-approval isn’t included with the bid. They’ll simply move on to the next one.”
Are you ready to take the next step toward buying your dream home? Let’s talk! And if you do not already have a trusted lender to help you get pre-approved, we can refer you to someone we work with routinely who can get you started. This is the best step you can take, so don’t delay - call us now or register below, and let’s make your dream of homeownership come true!