When you’re beginning your home search, you might be tempted to jump right into scouring the market for that dream home, figuring that you’ll worry about the loan once you find the house you want.
However, you put yourself in a much stronger position if you get pre-approved for a home loan before you start your home search.
Here are three benefits to getting a pre-approval first:
- More Effective Searching: once you know how much you’re approved to borrow, you know precisely what you can afford. This helps you save time and energy – and helps manage your expectations – when you can narrow your search to specifically that range of homes that fit within your price range.
- Stronger Position for Negotiating: you make yourself much more attractive to sellers when you come to them when you have a pre-approval in hand showing that you can, indeed, afford to buy their home. You can come across as being a more serious buyer compared to others that may also be interested in the same property, which puts you at an advantage to getting the home that you want.
- Peace of Mind: there’s not much worse than falling in love with a home and then find out that you’re not approved for the amount that you were expecting. Getting pre-approved before you begin your home search will put you at ease knowing that you know exactly what you can afford and what houses fit those needs.
Interested in getting started with the Pre-Approval process? I would be happy to put you in contact with a reputable Mortgage Broker. They are people I trust will give you and honest and accurate assessment of the market and your options.
This information is courtesy of my friend John Ciolino at First Capital Mortgage in Los Angeles.