Written By: Aubree DeVisser
I’m sure you have heard from one person or another who is on the hunt for a home that it hasn’t exactly been easy. So, why not do everything you can to set yourself up for a smooth and successful home-buying process?
Here is one thing you can do to gain a competitive advantage, accelerate the process, and know how much you can afford.
GET PRE -APPROVED
Going to an agent and choosing a lender is your first step. Receiving that pre-approval letter really should be the key you want to have in your pocket for when that dream home becomes available.
What exactly is a preapproval? It’s when you gather information such as your job status, income, credit score, etc. and the lender uses that information to give you a number that represents the amount you can afford to borrow for a home. (You can do this all from your phone if you prefer it that way, email me to get the link to the app!)
So, why does this help you? As I stated before, there are three main reasons.
1.) You gain a competitive advantage.
Who doesn’t want that? Especially now when bidding wars and multiple offers are something most buyers will have to deal with, you want to have every advantage you can get. A preapproval letter from your lender says your serious. It says I’m all in. I want this and I’m ready to prove that. Not to mention it shows the sellers that you actually have the funds ready to go if the offer was accepted and that’s obviously important and reassuring to them.
2.) Move forward, faster
Think about it this way. You write an offer in a multiple offer situation and the sellers need to close ASAP. If they see that you’re preapproved and have done all that work ahead of time, that’s time saved and you’re ahead of anyone else who hasn’t done that yet. Then, as soon as that offer is accepted you’re ready to move on to all the other details.
3.) Dream home without the dream loan
This one is really important for you and whomever you’re buying a home with. You need to get preapproved so you know what you can afford. Let me tell you a quick story. A couple goes to look at a home. Falls in LOVE with it. Wants to put in an offer. (Most people won’t even accept offers without a preapproval letter) Let’s just say they accept it. They go to a lender. Their loan amount is $20,000 less than the home price. UH OH. NOW, WHAT.
Their dreams are shattered. They can’t buy the home. Everyone is frustrated. The home-buying process is probably ruined for them. They realize their dream home is way out of budget right now and that’s DEVASTATING.
So, if you take anything away from this reason, take this:
Know what you can afford. Don’t break your own heart. Make it easier on yourself, and everyone else, and get preapproved before actively going out to look at homes.Then you can work on a budget and accurately see and know what you can borrow and what you can afford. (Need help planning and saving and want some guidance? We can help!)
I hope this was helpful and if you’re ready to start looking, or are already looking, that you consider these three reasons to put you ahead in that home-buying process!
Are you a first time home buyer and want to be part of a community of other first-timers with some helpful tips and tricks? Check this group out!
Have questions about buying your first home? Contact Aubree DeVisser here!