Why Be Pre-Approved Before Searching For PA Horse Property?

By
Real Estate Agent with Cindy Stys Equestrian and Country Properties, Ltd. PA License #AB068077

 

Why Be Pre-Approved For A Mortgage Before Searching for Pennsylvania Horse Property?

 

Searching for Pennsylvania Horse Property? Get Pre-approved Before StartingYou have put aside some savings from each pay period for several years in order to have a down payment to buy your first horse property in Eastern Pennsylvania.  You are now anxious to get started with your search so that you can have your horses home with you.  It will be wonderful to walk out your door and visit with them at anytime.

 

But, wait!  Before you start, there is an important step to take.

 

No, it is not to find a real estate professional to help you.  That is the second step.

 

Before looking for the right real estate professional to assist you in your search, there is one other important item that is a MUST DO.  That item is to first find a reputable, local lender that will lend funds on this type of property.  Keep in mind, not all lenders will mortgage farm properties or properties with acreage.  The next step is to have the lender pre-approve you for a mortgage before going out and actually starting your search.

 

Why is it so important to get pre-approved for a mortgage before starting the search for horse farms?

 

To begin with, it is important to know what the highest price limit your financial status will allow.  Otherwise, you may be disappoimted.  For example, you have estimated that you can afford to buy a farm for $500,000 maximum.  You start looking at properties up to that amount and find one that you absolutely love at $475,000.  Now you go to get your pre-approval from the lender so that you can put in an offer.  After speaking with the lender, it is determined that you can only go up to $400,000.  There goes your dream farm.

 

Another reason for getting pre-approved before your search, is that the Sellers, and real estate professionals, prefer working with Buyers that are already pre-approved.  This way they know that they are not wasting their time showing a property to someone because they already qualify for a property within that price range.  The real estate agents are not tour guides, nor do the Sellers have the time to waste having someone that may not qualify looking at their property.

 

Here is another scenario: You find a farm and you are ready to put in an offer.  You find out that there are a couple of other parties that will be putting in an offer on it.  The other parties are already pre-approved and ready to move with the offer while you still have to go through the pre-approval process.  So, you figure on putting in an offer without the pre-approval and give the Seller an I.O.U. for the pre-approval.  This will not work.  Without the pre-approval, the Seller has no idea if you are able to buy the property without having the pre-approval in hand.  Chances are that the Seller will choose one of the other offers presented that have pre-approvals already, even if your offer was the best out of all of them. 

 

As you can see, there are several reasons for Buyers to get pre-approved for a loan before doing the actual search.  In the long run, you will be glad you did.

 

Ready to start searching for your horse farm in Eastern Pennsylvania?  Then see your local lender that will deal with farms and get pre-approved so that you can start your search.

Posted by

Brigita McKelvie is a REALTOR®  (Pennsylvania License #RS297130) with Cindy Stys Equestrian & Country Properties, specializing in rural and horse properties and farms in Eastern Pennsylvania.  She has an e-Pro® (Certified Internet Expert) certification and a GRI (Graduate, REALTOR® Institute) designation.  

Brigita McKelvie, REALTOR

Pennsylvania License #RS297130

Rural and Horse Properties and Farms

 

Cindy Stys Equestrian & Country Properties, Ltd.Cindy Stys Equestrian & Country Properties, Ltd.

 

The Premier Equine and Country Real Estate firm serving Eastern Pennsylvania from back yard operations to world class equestrian facilities.

Use a REALTOR with "horse sense" that doesn't horse around when it comes to horse properties.

 

 

e-ProGRI (Graduate, REALTOR Institute)BNI

 

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Topic:
Home Buying
Groups:
Horse Property Specialists
Horse Farms
Farms, Ranches, Acreages and Land
Local Expert
Equestrian Properties
Tags:
horse farm
horse property
buying horse prpperty
eastern pa horse property

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Rainmaker
3,078,958
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Great title and one should be preapproved before looking at any property!

Sep 05, 2016 10:34 PM #1
Rainmaker
938,593
Brigita McKelvie, Associate Broker
Cindy Stys Equestrian and Country Properties, Ltd. - Lehigh Valley, PA
The Broker with horse sense and no horsing around

Good morning, Kristin!

Absolutely!

Brigita

Sep 05, 2016 10:36 PM #2
Rainmaker
1,529,014
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Brigita McKelvie Fortunately, we ARE seeing nearly all of our clients coming forward with Pre-Approvals or Pre-Qualification Letters in hand when meeting us for the first time. We do, however, always discuss this over the telephone before meeting our new clients. Great post!

Sep 06, 2016 12:06 AM #3
Rainmaker
938,593
Brigita McKelvie, Associate Broker
Cindy Stys Equestrian and Country Properties, Ltd. - Lehigh Valley, PA
The Broker with horse sense and no horsing around

Sandy & Norm,

I agree.  Many that I come across are already pre-approved.  Yet, there are others that are not.  Once in a while I will come across someone that would rather get pre-approved after seeing the property.  Fortunately, there are very few of them.  This is a good way to get the word out if anyone is preparing to buy a property.

Brigita

Sep 06, 2016 05:04 AM #4
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Rainmaker
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Brigita McKelvie, Associate Broker

The Broker with horse sense and no horsing around
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