Are You Shopping for a Home Like You're Buying a Car?
We shop. We research. We read reviews. We go out to take a look, take it for a test drive, and eventually we fall in love with "The One."
Then we go see about financing.
What's wrong with this picture? Well, nothing if you are buying a car. The car dealer has a small army in the finance office, and they have financing for just about everyone, right there on the spot.
However, if you are buying a home, get the financing piece done FIRST. The last thing you want is to find "The Perfect Home," only to have someone else snatch it out from under you because they had their pre-approval in place, and you didn't.
Before a seller signs your offer, they want to be assured that you can complete the deal. I have never found a seller who will accept an offer without a pre-approval letter from the buyer's loan officer (or proof of funds, if it's a cash buyer). If they take their home off the market, they need to know it has a good chance of closing.
I just recently met a buyer who is coming into a large sum of money. To her, it's cash in the bank and she wants to write an offer. But to the seller, it's no deal because she can't prove that she has the money yet. We are just hoping that the home she fell in love with is still available by the time the funds clear in her bank account.
So.....as tempting is it is to get right out there and look at houses, get the financing piece buttoned up first. You will know how much you can afford, and will be ready to close the deal when you find "The One."
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