Why do you need to be pre-approved before you start looking at property?
You want to be pre-approved before you begin your search for a home for several reasons:
1.) To find out what you can afford to purchase.
2.) To see if your credit is good enough to get a loan for the home you want to buy. In some cases, you may need a credit counselor to help you get your credit straightened out.
3.) When you make an offer, the seller of the home wants to know you can close on the property before they will remove their house from the market.
4.) When you make an offer, your agent usually includes the pre-approval with the offer. The seller of the home will look at the offer and will feel it is a stronger offer versus not having the pre-approval. If there are multiple offers, it may make a difference in which offer the seller takes.
5.) In some cases, your lender may not be able to finance what you are wanting to buy such as an oceanfront condo or lot and you will know this up front. Plus, if they are unable to give you a loan on this property, we will know up front and can help you reach out to other lenders that might be able to loan on one of these specific properties.
6.) Not all Lenders will lend on beach properties (investment property), you will find this out when getting the pre-approval.
7.) You will know your rate up front, which will help you in your budgeting process.
For any questions concerning this, give us a call. We will be glad to help you.