The Importance of Getting Pre-Approved
A common practice that we see a lot with new buyers when they start looking for a new home is they call a Realtor and start looking at homes they think are in their price range. This can be very hard because when they go to talk to a lender usually things get put into perspective and it does not always align with what the buyer thinks they will qualify for.
Talking to a lender is truly the first step in the home buying process because they are able to help you understand the price point that you will qualify for without straining yourself as well as develop an avenue to achieve home ownership. We have laid out why it is important to get pre-approved!
Know What You Can Afford and Shop With Confidence
Knowing what you can afford is important so that expectations are not ruined before you start house hunting. Your lender is your advocate and will do everything to educate you on how the process works and help you understand what you qualify for. By looking at your debt-to-income ratio they can help figure out the price point that you qualify for and help you develop a game plan to get your dream home. This will allow you to shop the market with your Realtor confidently.
Know Your Monthly Payment
Along with helping you figure out the price point you qualify for, your lender will also let you know what your monthly payments will be based on your down payment. Knowing you monthly payment can help you adequately prepare for the future and make sure you stay in budget when shopping. Your lender will also let you know what closing costs will look like.
Address Any Issues/Concerns Upfront
The benefit of talking to a lender first before shopping is that they can help put things into perspective. Sometimes you as a buyer are ready to buy, but your credit score does not allow you to qualify for the price point that you want. Your lender can help make a credit repair game plan in order to help you reach the desired price point and credit score to qualify. They will work with you to help make your goals become reality.
Add Strength to Your Offer
Having a pre-approval letter with an offer for you dream property is one of the strongest offers that you can write. The pre-approval letter validates that you are qualified to purchase the home and instills confidence in the seller. Having the pre-approval letter with an offer can be the difference between getting your dream home or being beat out.
Close on Your New Home Quickly and Smoothly
Talking to a lender and getting qualified can expedite the home buying process immensely. This will allow you to make a strong offer and have a smooth escrow because the seller knows that you are able to afford the home. Lenders will work hard with your Realtor to make sure that escrow goes smoothly and that you are able to close at a reasonable time on the home of your dreams!
*We work closely with a few lenders who we have formed strong working relationships with. If you want to talk to a lender about how you can make the first steps in purchasing a home of your dreams we are more than happy to connect you with them!*
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