Here’s some advice for anyone who is thinking of buying a home: Do not miss the critical first step of getting a home loan pre-approval. Why you ask? A pre-approval involves evaluating your financial information and credit rating to assess whether you can be approved for financing. It is not a promise of a mortgage, but the best estimation in lieu of a full application. Receiving a pre-approval letter is important for several reasons. This blog provides reasons why buyers should get pre-approvals before seeing Moberly area properties.
Know Your Price Range
Loan options and mortgage rates will vary. A pre-approval will give you a handle on the loans and financing choices available, what your closing expenses will be, and most importantly, your price range. Without this information, you can waste valuable energy looking at properties that you cannot finance. Identifying what you can afford also saves you the emotional distress of wanting a home that you cannot purchase.
Strengthening Your Leverage
It’s true that homes with the best features or the best price tend to sell fast. A pre-approval provides you with the ability to act on that perfect home quickly. Put yourself in the place of a seller who receives an offer on their property. If they knew nothing about you except the words on your contract, the seller would accept every offer written. (If the price was right.) I can’t tell you how many times I’ve received offers from various agents in my local area who have no proof of a buyer’s ability to obtain financing. Even though a potential buyer makes an acceptable value on their property, without the ability to finance the loan, there is nothing. I recommend that when you find the home of your dreams, your agent should include a pre-approval letter with your offer. This ensures the seller that you are ready and capable of completing the purchase. It is rare that an owner would accept an offer and waste their time without any verification that the person can even get financing. In competing-offer situations, this is even more important. It will put your offer in best standing against any competing offers.
Reasons Why Buyers Should Get Pre-approvals Before Seeing Moberly area Properties
The real estate process can be complicated and stressful to begin with. Getting your ducks in a row can minimize the stress. Find you an agent who will sit down with you to teach the process before you get started! We have a list of lenders we can recommend for your financing options! For additional information, contact your favorite agent at Advantage Real Estate by calling (660) 263-3393.