Often buyers want to go look for property before they are preapproved. I have put together this list of why you should get preapproved before looking at property.
1. You need a preapproval letter to make an offer - More than once I have had a buyer lose out on a property because they didn't get their preapproval done in time. They saw a house they wanted but couldn't act fast enough because a preapproval can take longer than they anticipated.
2. You should know what you qualify for - There is no sense in looking at $200,000 properties if you only qualify for $150,000. You will only be disappointed. Talk to a lender to determine what your cap is.
3. You may not qualify. People think they will have no problem qualifying but standards are tougher today than previously. You won't know until you sit down with a lender.
4. Your agent wants to know you qualify - We may take a buyer out once before they are prequalified, but then we require them to get a preapproval letter. There have been times we spent a weekend or two showing a buyer property only to find they didn't qualify and they wasted our time.
5. Your sending your agent a message when you won't get qualified - If a buyer refuses to get prequalified, it is an indicator to us they are "joy shopping" or they know they may not qualify.
6. Sellers assume buyers are preapproved when you come through their house - Sellers spend a lot of time and energy getting their homes ready for buyers. If you were selling your home wouldn't you want to know that buyers coming through your home are legitimate?
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