LOAN PRE-APPROVAL: WHY YOU NEED IT

So you’ve been browsing potential properties online, and quite a few listings have sparked your attention. Now you’re psyched to go visit them! Surely one of them must be your new dream home.

But not so fast. Before shopping for a home, take some time to shop around for the mortgage you need and get a pre-approval first.

I know, it’s not as much fun. But visiting potential homes with a pre-approval in hand can make all the difference between success and heartbreak. Here’s why.

AFFORDABILITY

Let’s say you fall in love with a property that you believe is the perfect home. You love it so much that you just have to make an offer on it right away. Then you go to the bank or mortgage company only to find out that this home is out of your price range. That’s not even considering additional costs such as escrow fees and title insurance.

If you get a pre-approval ahead of time, you will already be armed with the knowledge of your price range. This empowers you to narrow your search only to properties within that range, even with the inclusion of closing costs, ensuring that you will fall in love only with properties that truly are just right for you.

NEGOTIATION POWER

A pre-approval letter puts you in a stronger position when it’s time to negotiate. It demonstrates that your intentions are serious. This means that your offer will be much more viable than another that may not be backed up by a pre-approval. If there are multiple offers on the table, this can make all the difference.  In some cases, it can even help you negotiate better terms.

SAVING TIME

Time passing. Blue hourglass.
Time passing. Blue hourglass.

The process of obtaining a pre-approval can be lengthy, especially if you encounter unforeseen problems. If you have found your dream home, you may want to act fast so as not to miss out. Having a pre-approval ahead of time will allow you to complete an offer quickly when the need arises; that way, you will not waste valuable time waiting around to get pre-approved. Sometimes a seller won’t even look at an offer that is not backed up by a pre-approval.

A PRE-APPROVAL REDUCES STRESS

The purchase of a new home should be a happy time. Don’t allow the stress and hassle of waiting around for a pre-approval get in the way. So get this important first step out of the way as early as possible so you don’t miss out on the perfect home for you.

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