You’ve probably heard a lot of terms as you’ve been preparing to buy a new home – lenders and realtors, pre-qualifications and loans, inspections and escrow… oh my! But one of the most important terms you should know, and action you should take, is getting pre-approved for your home loan.
There’s great importance in getting pre-approval – it’s a crucial part of your home search. Why? Let us tell you the benefits of getting pre-approved:
- Because it can help you be more focused in the hunt for your new home. Sure, you can search online, and you may even have friends and family pass along listings that they think will be helpful to you. But neither of those things can clearly outline the budget you have for your new home – and that’s a number that you’re going to need if you’re going to spend your money wisely, and find the right space for you. Having pre-approval will help you understand your financial situation clearly, and help you make a clear-headed decision on the type of home and location you can really afford.
- Because you’ll have a better relationship with your realtor. When your chosen realtor sees that you’ve been pre-approved, they immediately know you’re a serious buyer who isn’t going to waste their time. The pre-approval letter shows them what you can afford, which helps them as they’re finding listings for you to consider. It also gives them confidence in presenting you to sellers, who will also appreciate your pre-approval – it tells them you’re a viable buyer who’s likely to complete the sale process with the support of a lender.
- Because you’re more likely to have your offer accepted. Sellers like a buyer who has a pre-approval for many reasons, but one of the key reasons is it helps them feel more secure in negotiating with you when they know that you’re one step closer to securing a full loan. Even though pre-approval doesn’t guarantee that you’re going to get a loan, it’s certainly more of a guarantee than going into a home negotiation with nothing. In fact, many sellers won’t deal with someone who doesn’t have pre-approval letter, and may even bypass your offer for the offer of someone who is pre-approved.
- Because it makes the entire home buying experience so much easier. You’re already under a lot of stress as you search for the perfect home and prepare for the major transition that endeavor precipitates. Why not make your life easier? Not only does having pre-approval help you as you search for your home and negotiate with sellers, it gives you confidence because you know for certain what you can afford, that you’re buying within your budget, and you’re more likely to be approved for a full loan.
The journey to home ownership can sometimes be lengthy and complicated, but getting pre-approved is actually a way to simplify everything, and take a little of the pressure off. Talk with your lender today to find out how you can get pre-approved!