The most important thing a buyer can do is get pre-approved for their home loan. I can’t overstate this enough. Getting loan Pre-approval really is pivotal for the home buyer and the overall process of purchasing a home. The first thing a buyer should do is find the real estate agent that they want to work with. The second thing a buyer should do is get pre-approved for your home loan.
Here is Why…
The process of purchasing a home is pretty basic. You find a real estate agent, you find a home you like that fits your budget and needs, place an offer, go through escrow, and receive your keys. Yes, in essence, that does seem pretty easy and like I said the process is fairly basic; however, in each one of those steps can live a major pitfall. Some of the pitfalls that exist when purchasing a home can be negated by getting pre-approved for your loan as the first thing you do after picking your real estate agent.
You will know that you are approved for a loan when you find the home you want to purchase. There is nothing worse than finding the home you really love just to find out that you can’t purchase the home because you were not approved for the loan.
If you find out during the pre-approval process that you can get approved for a loan, you now know that and can work on the process of fixing what needs to fixed so you can get approved.
Once you are approved for a loan, you now know how much you can spend when looking for your home. Again, there is nothing worse than finding the home of your dreams, putting in an offer, only to find out that yes, you are approved for a home loan, just not for the amount that you need for the home you want to put an offer on.
Negotiating and bargaining purposes. When you do put an offer in on a home you want to purchase, and let’s say the seller has multiple offers, they are probably going to chose the offer that they know has been pre-approved to purchase a home at that amount. Sellers don’t want to miss out on the opportunity to sell their home. In short, it puts you in a better position when multiple offers are present.
Take the time to get pre-approved for your home loan. It will save you a lot of stress and hassle when you are trying to purchase a home.