Why do I need to get a pre-approval before buying a home?
If you’ve ever tried buying a property, you’ve heard this question before: “Have you already been pre-approved?”—and probably more times than you would have liked. It’s the critical question on every real estate agent’s mind, and it turns out they have a really good reason for asking.
A pre-approval letter for a mortgage is a document that says, “I have a bank willing to give me a loan.” It shows you’ve already spoken to a lender, and you (potentially) will have access to the funds to be able to purchase the home.
There are times you won’t need a pre-approval, but that’s usually when you’re buying cash. So, if you don’t have the funds to buy all cash just yet, chances are you’ll need a loan to cover the cost of buying the property.
There’s a lot of information in that single pre-approval letter. Here are a few reasons why you should always get your pre-approval done first and how they can help your home buying process.
Here’s what a pre-approval can do for you (benefits):
- Help determine your budget for a home.
- Help determine the type of home you’re eligible to purchase.
- Your loan officer can help estimate your mortgage payment before you even buy.
- Improves your credibility with the seller who may take your offer more seriously.
It might seem like a silly question at first, but a pre-approval can truly shape your home buying journey. It can open doors to new opportunities, or help you narrow down the list of all the homes available in your areas of interest.
If you or someone you know has already taken that first step is pre-approved to start home hunting, click here to speak to a qualified Realtor® today.
Article By: Jessica Gervais
Real Estate Writer for LuxSouthFloridaHomes.com