Recently reading through some social media, and also based on my experience and converstations with customers and colleagues, it seems that there is a LOT of confusion and misunderstanding about the importance of having a pre-approval letter in hand when starting your property search.
Now, different agents may tell you different things, but this is my take.
HOW MUCH CAN I REALLY AFFORD?
First, going through the process of obtaining a pre-approval letter from a lender helps the buyer understand what they can spend, and also save, with a great lending package. There are several options when it comes to which loan to pursue and how that can relate to future costs and savings. After all, the idea is that you can enjoy your new property and comfortably pay the mortgage and your other bills as well.
WHY DO I NEED THE PRE-APPROVAL BEFORE I START LOOKING?
Second, once you’ve established what your price range REALLY is, and what you can REALLY afford to put down, then you can start looking at homes (or land) that fit your budget. It makes no sense to look at places you can’t afford – and it’s a waste of time for you and everyone else involved. And, get this, sometimes you can actually afford more than you thought!
Showing property involves buyers and sellers. There are also lots of sellers that will only allow their home to be shown to potential buyers with a pre-approval letter in hand.
GET THE DREAM HOUSE YOU WANT!
Homes are selling fast! Be ready when you find the right place. Because if you are not ready to make an offer – meaning pre-approval must be in hand – that perfect place can easily slip through your hands and get snapped up by someone else.
SO WHAT’S THE FIRST STEP?
Find an agent and set up a meeting. Talk about what you want and when you want to buy. Then meet with your lender and get that pre-approval. Don’t have a preferred lender? Not a problem. A good agent can usually give you several options when looking for a professional lender.
This is just the tip of the lending iceberg — there is a lot more information on this subject. Your professional agent and professional lender can guide you through the steps and work with you to make the best decisions for what is one of the biggest investments most people ever make.
And of course, call Jennifer Clover for help! 240-925-4558.
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