Why Do I Have to Get Pre-Approved?
So much has changed in the past few decades that the old ways of buying or selling a home simply don’t work today. You shopped around, made an offer and then went to the bank to get a loan. If you were denied or there were problems, you were out of luck.
Today, a buyer needs to speak to the bank or mortgage company and get approved prior to shopping and definitely before making an offer on a home. Many times not being approved won’t get you past the front door.
With online listings and so many other real estate resources available to buyers and sellers, it’s easy to quickly get a property out to the public and ready to show. Buyers aren’t waiting a for call from their real estate agent like they did in the 1980s. Instead, buyers get texts from their agents and see homes as soon as possible. It’s just more efficient.
Transactions happen at the same speed. If you’re not approved for a mortgage when you make an offer, the seller risks waiting weeks to see if your loan will go through. That’s not good for them. Show that you’re pre-approved, and you’ve eliminated the headache for the seller.
People today are focused on their monthly expenses more than the total purchase price. The buyer today doesn’t always plan on staying in their homes for 30 years like they did 25-30 years ago. Knowing all your options before you start shopping allows you to shop and buy smarter. There’s no sense looking at homes in the $400,000 range if you can afford more or you can only afford $350,000.
Competing with pre-approved buyers
Few buyers today get into the real estate market without forging a relationship with a local mortgage professional. It’s simply smarter to have that relationship set up and working for you. In a competitive market, you may face multiple offers on one property. If you don’t have a pre-approval letter to go with your offer, you have no chance of getting your offer accepted. Not being pre-approved means you aren’t a serious buyer in the eyes of the seller and their real estate agent..
Getting pre-approved means organizing all your documents, documenting your income, debt and credit, and understanding all the loan options available to you. There should never be a cost to be pre-approved for a loan. And you aren’t committed to a mortgage when going through the pre-approval. When you get a signed contract from a seller, then you’re ready to lock in a rate and choose the mortgage that’s best for you.
Please call me so I can help you with this process and find you the home of your dreams.