Why Get Pre-Approved Before Looking for a Home?

why get pre-approved before looking for a home

If you are looking for a home that fulfills all of your desires, the first thing you should do is get pre-approved before looking for that home. Pre-approval saves you time, and it’s the first big step on your path to buying a new home. And for this, you should look for a Realtor who can recommend the best options. Let’s jump into some reasons why you should get pre-approved before looking for a home. 

What exactly is pre-approval?

First, what exactly does “pre-approval” mean? Pre-approval is when a lender performs a preliminary evaluation of your creditworthiness as a borrower before you ever put in an offer on a house. They do this by looking at your financial information, including your income, debts, and credit score. If they pre-approve you for a loan, it means they’re confident you’ll be able to make the monthly payments. Even if you don’t end up using that particular lender for your loan, pre-approval is a great way to show sellers that you’re a serious buyer who is likely to be approved for financing. 

There are a few reasons why a lender might refuse to pre-approve you for a loan. One reason could be if they think you’re not likely to be approved for financing from any lender. Another reason could be if you don’t have enough income or assets to meet their lending criteria. Lastly, a lender may be reluctant to pre-approve you for a loan if you have poor credit. However, there are still lenders who specialize in bad credit loans, so it’s worth shopping around if you’ve been denied pre-approval from one lender.

Now let’s jump into some important reasons to get pre-approved before you even start looking for a home!

Sellers will consider you a more serious buyer

Having pre-approval gives you several advantages over other buyers who are not pre-approved. For one, it shows that you’re serious about purchasing a home and are not just looking. Additionally, pre-approval gives you an upper hand in negotiation as the seller knows you can reliably obtain financing. 

When a home seller sees that you have pre-approval for a mortgage or home loan, they are more likely to take you seriously as a buyer. This is because pre-approval shows that you are already qualified for financing and are ready to purchase a home. And when you find the perfect house, you can confidently make an offer, knowing that your financing is already lined up. 

You Will Save Time

When you’re pre-approved for a mortgage, it’s like having a cheat code for buying a house. Because you know exactly how much you can afford to spend on a house, your time spent identifying options up front will be quicker and more effective. That means you can focus your search on houses in your price range, with the specific features that you want, saving you a lot of time. 

Pre-approval can also help you to negotiate a better price on the house because, as mentioned above, the seller will know that you’re a serious buyer with the ability to get the deal done quickly. So if you’re thinking of buying a house, getting pre-approved for a mortgage is one of the best things you can do to save time and put yourself in a strong position to close the deal.

Guidance From an Expert

A good Realtor will always recommend you get pre-approved for a mortgage. We’e discussed how pre-approval boosts confidence in sellers that you’re a serious and qualified buyer. In addition, pre-approval helps to bolster your ability and efficiency in finding the perfect house. 

Your Realtor will help guide you through the process, all the way from pre-approval to closing. With their expertise and insight, your Realtor will be able to point you in the right direction and help make your home buying experience as smooth as possible. So if you’re looking to buy a house, be sure to get pre-approved for a mortgage, and be sure to work with a reputable Realtor.

Need help?

There’s no time like the present to start looking for your dream home, and Edgardo is here to help. With years of experience in the real estate industry, Edgardo knows how to find the perfect property for you. He’ll work with you to identify your needs and wants, and then he’ll scour the market for homes that match your criteria. When you’re ready to take the next step, Edgardo will be there to guide you through the negotiation process and help you get the best possible deal on your new home. So what are you waiting for? If you’re ready to jump in, contact Edgardo to get started on finding your next dream home.

Why get pre-approved before looking for a home? | Edgardo Quiroz