Why Get Pre Approved?
Buying a home is a very exciting time and likely to be the largest investment you’ll ever make. The first step as a potential home buyer is to find out what you can afford. I cannot stress enough the importance of getting pre approved before spending too much time looking at homes.
To get pre approved you will need to meet with a lender. The lender will ask for some information about income, debts, pull your credit score and so forth to come up with the pre approved loan amount. The lender at this point can let you know how much you would qualify for, the type of loans available to you and the approximate interest rate. I’m not going to go into too much detail about loans, but make sure you fully understand the type of loan(s) available to you. Your lender should be able to guide you through the loan types and the loan process. One part of this process is to find out the kind of down payment you will likely need. Once you have this information available, you will be ahead of those who choose to look at homes first and then try to get pre approved.
The importance of getting pre approved before you look at homes for sale will help you in two additional ways. One being you will know how much home you can buy and second, you will be ready to make an offer quickly. This moves the process along and saves on the frustration of finding the home you want and then finding out you don’t qualify for it. It also helps to have this information when you make an offer so the seller can see that the offer is not a waste of their time.
Put yourself in the home seller’s shoes for a moment. They may be looking at more than one offer on their home. A fair offer presented by you and your Realtor® with a pre approval letter can carry more weight than an offer without this knowledge. For more details on pre approval you can also visit http://www.investopedia.com .
If you have more questions about buying a home, we are always happy to help. The information above is simply one part of the process, but it is a very important part. Feel free to give us a call and talk to an experienced Realtor.