House Hunting 101. First step: Pre-approval

House Hunting 101. First step: Pre-approval

Getting pre-approved with a lender is beneficial in several ways.

Avoid heartache. You’ll know how much you can spend up front. It’s no fun to find your ideal property and then find out you can’t afford it. Plus, once you find the house you want, you’ll be ready to pounce!

Don’t waste time. Yours or your agent’s. What good is it to look at homes that are out of your reach? Or maybe you can afford more than you originally thought! Spend your time wisely. The home you may fall in love with may have received an accepted offer an hour earlier.

Multiple offer situation? Pre-approval adds strength to your offer. Sellers are more likely to accept offers with pre-approval letters than one’s that don’t.

REALTORS prefer you get pre-approved. In fact, some agents won’t work with buyers until they’ve proven they’re qualified to buy. It helps get things off on the right footing.

Be informed. You’ll have an idea of what your monthly payment will be, allowing you to budget your money before making this large investment. It also helps show you what the down payment and closing costs will be.