You have decided to start looking for a house..now what?
The process of buying a home includes many steps and mountains of paperwork. But one of the best pieces of paper you can have is your pre-approval letter!
Many buyers get frustrated when the first thing your Real Estate Agent asks you if you have spoken to a lender yet. You maybe anxious to get out and start looking at homes! But here is why the pre-approval process is so important! 1. A pre-approval letter helps you define your search Your loan officer will ask you many questions, including how much you make and spend monthly. These are important factors in finding out what you can afford each month. This will save you a lot of frustration up front, there is nothing worse than finding your dream home and having the bank tell you that you can not afford it. This process will help you define your price range and focus your home search 2. A pre-approval letter shows you can buy a house Unless you plan on paying cash for your new home, you will generally need some kind of financing. It is important to know you can qualify to buy a home. There is nothing more frustrating then to look at houses for days, then find out you had no idea your FICO score was that low, or that collection was on your record. Use the process to find out all the surprises before hand and KNOW you have the reassurance you can buy a house. |
3. You will have more leverage when are writing offers
Having a pre-approval letter helps make your offer more solid when it comes to it being presented to the seller. They are more willing to negotiate with someone who has an approval letter than someone who still needs to start the process. Plus, if you are competing with other offers, yours will be ranked higher due the fact that you have already started the process. It is less risky for the seller to accept an offer with a pre-approval letter than with and offer that does not have one. 4. Pre-Approval letter is BETTER than being pre-qualified. Many banks or loan officers will give you a pre-qualification. This is only an estimate of what you can afford. It is not a statement of fact, but rather than an opinion. Make sure you get an official Pre-Approval letter! This is a statement of fact, and will hold more weight than a pre-qualification letter. It takes more work to get pre-approved, but it will save you a lot of money in the long run! We hope this gives you some information on getting pre-approved and why it is important when beginning your home search. If you would like to get started, give us a call at 619-Low-Rate or drop an email at [email protected] |