Why Buyers Should Get Pre-Approved Before Seeing Alexandria Properties
If you are thinking of buying a home, do not miss the critical introductory step of getting a home loan pre-approval. What is a pre-approval? A pre-approval evaluates your financial information and credit rating to assess whether you can be approved for financing. It is not a promise of a mortgage but, it is the best estimation in lieu of a full application. Receiving a pre-approval letter is important for several reasons. This blog provides reasons why buyers should get pre-approvals before seeing properties.
Know Your Price Range
Loan options and mortgage rates will vary. A pre-approval will give you a handle on the loans and alternatives available, what your closing expenses will be, and most importantly, your price range. Without this information, you can waste valuable energy looking at properties that you cannot qualify to buy. Identifying what you can afford also saves you the emotional stress of seeing a home that you fall in love with to only find out later you cannot purchase the home.
Strengthening Your Leverage
Homes that a priced well or have attractive features tend to sell quickly. Having a pre-approval upfront enables you to act quickly when you find your dream home. When you submit an offer on a home you also have to include your pre-approval letter. This tells the sellers that you are not only ready but, also capable of successfully closing on their home. It’s rare, if ever that an owner will accept an offer without any verification that the person can obtain financing. Sellers don’t want to risk wasting their time taking their home off the market unless they know the buyer can obtain financing.
A pre-approval saves time during the offer process and loan process. As we stated above sellers want a pre-approval to be included with the offer. Failing to have one ready may delay submitting your offer and can cause you to miss out on a listing. Particularly on a property that is receiving a lot of attention. Time is of the essence to have your offer submitted in order to be considered for the property. Pre-approvals consist of analyzing your income, personal assets, recurring debt, etc. and unless you have the documentation needed on hand it can take a little time to submit everything to your lender to then be evaluated for pre-approval. Mistakes in your credit file can result in more delays should they need to be corrected in order to be pre-approved. Starting in advance will save valuable time when processing your mortgage and accomplishing a quick closing.
If you're serious about purchasing a home the first step is getting pre-approved. If you don't know who to contact for pre-approval seek out an agent that you trust to help you purchase your home and they will be able to recommend lenders they work with regularly and trust.
If you're interested in purchasing a home in Northern Virginia contact us and put our expertise to work. From recommending lenders, touring homes, negotiation, and contract compliance we will handle all the details of your purchase and achieve you a successful transaction. We guarantee it - ask us about our Love It or Leave It Guarantee!