Friday, June 18, 2010

Get Preapproved Before You Start Shopping for a Home


Whether you are a first-time home buyer or not, getting approved for a loan before shopping for a home is an essential first step.  Yet, did you know it is far better to be preapproved for a loan than to be prequalified?  When you are prequalified, the lender is giving you an idea of the mortgage amount for which you qualify based only on the information that you provide.  It does not  include an analysis of your credit or an in-depth look at your ability to purchase a home.  For this reason, your prequalified amount is not a sure thing.

However, when a lender hands you a preapproval letter, it means something totally different:

  1. You save time by looking at the right homes.  As a client of Pickett Property Group, we will set you up in our system so that you can receive listings or updates of available homes in the area based on criteria that you want in a home...number of bedrooms, baths, garage space, and of course, price range.  You'll be able to save time by looking at the homes that you can afford instead of looking at the ones that are beyond your means.
  2. Gain confidence.  Now when you find that perfect home, you can feel confident in the process and minimize any anxiety because you have been preapproved.  You don't have to worry about losing the home because you weren't qualified to buy it.
  3. You have increased negotiating power.  When you make an offer on a home, the sellers are more likely to accept your offer because your preapproval is giving them peace of mind that the sale will go through.  It won't be contingent on being able to obtain financing, which will let the sellers know that your offer is serious and could prevent you from losing out to another buyer who already has financing arranged.
Because mortgage approval can be a lengthy process, it is to your advantage to get a preapproval letter before you are ready to begin your search for a new home.  If you need a lender referral, we work with several that are friendly, thorough, and will make the entire process as smooth as possible from beginning to end.  Simply contact us or give me a call at 913.787.1870.

No comments:

Post a Comment