The Importance of a Pre-Approval

Once you commit to starting a home search, it is important to have a strong understanding of what exactly you qualify for. Choosing to receive a pre-approval from a mortgage lender will prepare you for the journey ahead and position you to reach your end goal – buying a home.

TARGETED BROWSING WITH PRE-APPROVAL

The majority of potential buyers begin by browsing homes for sale online to get an idea of what neighborhoods and housing styles they like. Choosing to do so without a pre-approval can end up being a waste of your time. You may be browsing for homes that are out of your price range. You could also be looking for homes that are below what you may qualify for.

If you start off by getting a pre-approval, you will sleep much more comfortably at night knowing the results you see are based on a home search that fits what you can afford.

IMPROVED RESULTS FROM YOUR REALTOR

The fact of the matter is that Realtors prefer to work with buyers that have obtained a pre-approval.

Once a Realtor has an idea of what type of home you want and what you can afford, they simply can do their job that much better for you. A pre-approval will enable your Realtor to suggest specific neighborhoods or sizes and conditions of homes to match your needs.

HIGHER ACCEPTANCE RATE FOR BUYERS WITH PRE-APPROVAL

When the time comes that you do find the perfect home, the process of placing an offer can go two different ways depending on a pre-approval.

If you are not pre-approved, you are taking a significant risk. Not only does your Realtor prefer for you to have that valuable pre-approval, but so do the homeowners of the house you’d like to purchase and their Realtor. The majority of your competition (other buyers) will have a pre-approval, so the likelihood of your offer being passed over for one with a more qualified buyer is high.

However, if you are pre-approved, this makes you a more credible buyer. Sellers may be more willing to negotiate with you based on your initial offer – this could open conversation for lowering the sales prices, including appliances, covering closing costs, etc.

SAVE THE STRESS

If you choose to start the process with obtaining a pre-approval, you will surely save yourself from copious amounts of stress. The pre-approval means an easier home search. An easier home search means you find your dream home quicker. Finding your dream home quicker means you don’t have to get pre-approved again any time soon!