When house hunting, many buyers make the mistake of waiting to contact a lender until after they have located their dream home. As a buyer, you will be in a much stronger position with a seller if you are pre-approved.
When house hunting, many buyers make the mistake of waiting to contact a lender until after they have located their dream home. As a buyer, you will be in a much stronger position with a seller if you are pre-approved.
To effectively house hunt, you must know the amount you can borrow from a lender. There is nothing worse than find your dream home, but failing to qualify for the amount you need for a loan.
Avoid this by asking your lender to pull your credit information and to let you know what needs to be done to get a pre-approval letter. If you are going to have problems with getting a loan, it is better to know about it as early as possible.
Sometimes buyers resist contacting lenders because it’s not the enjoyable part of home buying and they’re afraid an extra credit check will reduce their credit score. This resistance is penny wise and pound foolish. Buyers who get their loan arrangements lined up at the beginning of the house buying process are really doing themselves a favor.
When you tell the seller you want to buy their property, give them a copy of your pre-approval letter. They will probably recognize the value of the letter, but don’t depend on this assumption. Make sure the seller realizes the loan is already approved. Taking this approach puts you in a very strong position. The seller knows you are not just wishing; you are capable of buying his property. One of a seller’s worst nightmares is signing a contract with someone, taking his property off the market, wasting time and then finding out that the would-be buyer cannot get a loan. On the other hand, you and your pre-approval letter are dreams come true.
Put on your shining armor and get pre-approved by a lender. Once you have the letter in hand, it's time to get out there and find your dream home. Good luck.. And as always I would love to assist in your home purchase.
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