Have you ever had a Realtor® ask you for your pre-approval letter before they are willing to show you a home? Why Realtors want a pre-approval before they show you a home, it’s not because they don’t value your business… it’s actually because they’re looking out for your best interests.
Shopping for a home before getting pre-approved for a mortgage is like walking into a grocery store without a wallet. You may have the desire to buy, but you lack the ability.
Here are six reasons to get pre-approved
You are financially capable
With a pre-approval letter, the seller has some assurance from the lender that you’re able to borrow money to purchase a home up to a pre-determined amount. It’s based on the income, employment, credit history and asset documentation you supply at the time of pre-approval.
More efficient home search
Getting pre-approved before you begin house hunting allows you to know how much house you can realistically afford. Knowing this narrows down the options and makes the selection process more efficient. Not to mention, it protects you from the unpleasant surprise of realizing the home you fell in love with doesn’t fit your budget.
It adds clout to your offer
In many markets, homes attract more than one offer. If the sellers are weighing one offer against another, they are more likely to accept the offer accompanied by a pre-approval letter. That’s because pre-approvals instill confidence that the buyer is financially capable and prepared to purchase their home.
It could increase your negotiating power
In addition to strengthening your offer when compared to buyers who haven’t taken this step, getting pre-approved may give you the upper hand when negotiating the price. If the homeowner is eager to sell, they may be more willing to accept a lower offer from someone they’ve been assured is financially capable of purchasing their home.
It saves time
Obtaining a mortgage is a lengthy process. Getting pre-approved ahead of time shortens the time between the contract to close — this way you’re ready to proceed with finalizing the mortgage once you’ve found the home you want to purchase.
Without it, most agents won’t work with you
This makes sense, right? When you hire an agent, he/she will invest countless hours showing you homes in the pursuit of finding your dream home. If you were in their shoes, wouldn’t you want assurance that your hard work would lead to a favorable outcome for both you and your client?
Learn more about mortgage pre-approval today!
Have Questions? Contact Us online or call 913.642.8300