Every Realtor and experienced home buyer knows the importance of getting pre-approved for a loan before starting the home search. Here’s a quick list of reasons why you are better off talking to a lender right away:
- You won’t know how much house you can afford until a lender checks your financial qualifications. There may be reasons that you do not know about that would make buying a home at a given price point easier or more difficult.
- A Pre-approval letter is typically good for 3 months, and even after that point it is easy to get the letter renewed after it expires.
- Most realtors will not start showing you homes until you’ve been pre-approved or at least spoken with a lender.
- No seller will entertain an offer that is not accompanied by a pre-approval. letter/proof of funds. If you come across your dream home once you’ve started your search, you may miss out on it if you haven’t been pre-approved. The pre-approval process can take a few days. There’s always a chance that someone else will put an offer in too. Don’t miss out just because you failed to prove you are a qualified purchaser.
- Once you’ve spoken to a lender, you will have a better idea of what your monthly payments could look like with your mortgage.
- You can discuss with a lender what kinds of loans you can qualify for which could affect what kind of home you would want to purchase.
Broker with Coldwell Banker