Why do I need to get pre-approved for a loan?
Thinking about buying a house before getting pre-approved for a loan is like going to the mall without your wallet. Don’t waste your time and risk homebuying heartbreak. Getting pre-approved for a home loan help you:
- Be competitive. The current real estate market is pretty competitive. When a great home comes on the market, it likely won’t be available long. Being pre-approved lets you jump in the game, knowing what you can afford and being prepared to negotiate with confidence.
- Stand out. Let the seller know you mean business. Only about 10% of homebuyers take the time to get pre-approved, so this is an easy way to make yourself stand out of the pack when placing an offer on a home.
- Get accepted. Some sellers won’t even consider an offer from a buyer who hasn’t been pre-approved. And you can’t blame them. When the seller says, “Show me the money,” being pre-approved let’s you do just that.
- Just do it. Some potential buyers put off getting pre-approved because they’re afraid they might not get a loan for as much as they want. Let’s be honest here. That’s sort of like being really sick and not going to the doctor because of what she might say. Knowledge is power. Be brave. Figure out what you can realistically afford, then start house shopping with peace of mind.