Why Get Pre Approved Before You Buy?

I always encourage my buyers to get preapproved before they start the process of looking for a new home. When you’re ready to buy real estate, the best thing you can do is get your loan approved first.

If you’ve been through this process, and felt some frustration don’t be too discouraged. I’ve had a few different people work with me over the years who decided that the time to seriously tackle the loan process was when they found a home they liked.

Call or email me today if you want more info or have questions about real estate, or the loan approval process. Remember, don’t wait until you find a home you like, find a loan you like first, then we should find your home.

While I want you to know that you’re not alone, I hope to change your thinking if you are ready for a new home, but haven’t yet talked to a lender. You can make the house hunting time much more fun, and certainly more satisfying if you get pre-approved for your loan.

What this means is that you would get in touch with a Certified Mortgage Broker or Loan Officer as soon as you decide that you want to buy a new home. That call should be the first step you take, even before you call a Realtor, and yes, even before you go online and start looking at homes for sale. I can help you find a lender, if you don’t have a relationship with someone already.

Here’s the main reason I hope you’ll make pre approval your first step: you’ll avoid potential heartbreak and frustration. I have seen many people start out with an idea of what they can afford, only to become very disappointed later.

The disappointment happens because as a buyer, you can easily become convinced that what you see is easily affordable, and meets your budget, but that’s not always the case.

Here’s a case in point. I met a man in his late 20’s a couple of years ago. He told me he was pre-approved. He had explored a couple of options for borrowing money online (he didn’t tell me his lender was an online form he filled out), and he felt he was ready to go house hunting. We reviewed a number of homes through a search I set up for him, and picked several to visit in person.

When ready to make an offer on one house he particularly liked, I asked for his lender’s contact info only to learn that his lender wasn’t actually a person at all. He had filled out some forms online and got preliminary information about what he might be able to borrow.

No credit check was done, no income verified and no pre approval. When he did get in touch with two different lenders, he found that when the rubber met the road, he needed to lower his target purchase price by about $50k. He was very frustrated to start over.

I see this happen at all price ranges, to people at all income levels. It seems that for most of us, it’s a lot more fun to look at the houses than it is to fill out paperwork and provide documentation to get a loan. That’s no big surprise, but in the end it’s a lot more fun to know that the house you ultimately choose for your new home is one you can actually afford to buy!

If you have questions about getting pre-approved, or want to talk about your plans for buying or selling real estate soon, please call or email me now so we can work on your goals together.

-Zachary Epps, full-time professional Realtor® and EcoBroker®

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