It’s not uncommon for people to buy their first home purely by chance. They begin looking to see what the market has to offer and next thing they know, they have enlisted a realtor and have started to look into serious options for buying a home. After finding the house of their dreams, they then begin the process of applying for and getting a mortgage.
While this method of house-hunting works for some people, the better approach involves a little more planning ahead - and the major step we recommend first, is getting pre-approved before you start seriously looking. By doing so, you’ll have a much more relaxed home searching and buying experience. Don’t believe us? Here are the reasons why getting pre-qualified is important when buying a home.
Reduce Ineligibility Mishaps
You never know how much the bank is willing to fund until you go through the process of applying for a mortgage. When you complete the pre-approval process, the bank checks your credit history and then completes some basic income verification.
From there, it can provide a basic idea of how much money it thinks you can pay back at the current interest rates. This prevents the likelihood of you pursuing homes lenders will not fund.
Improve Competitive Offers
We’re currently in a seller’s market. Existing homeowners are bombarded with offers for their homes and can pick whoever they see fit at high prices. No seller wants to go through the process of choosing you as a buyer and then discovering you were either only window shopping or not eligible.
A pre-approval letter proves to sellers that you are serious and have done your homework. Plus this might make them more willing to negotiate and work with you.
Respect Professional’s Time
Realtors and other professionals spend a lot of time helping you find a home. When you have a pre-approval letter, your realtor feels more confident about the showing process leading to a sale. Without that pre-approval letter, the professional is gambling with their time.
Getting a pre-approval letter shows respect for the time we invest. It also provides us with a budget to work with.
Save Yourself Some Time
Even if the bank qualifies you for the home of your dreams, without a pre-approval letter, you begin that process from scratch. This might even mean finding a bank, to begin with. The process of bank hunting and submitting an initial application takes time.
Your broker and underwriter also need more time to review the information you presented. This all tacks on extra time. When you apply for a pre-approval, they can complete checks while you continue house-hunting.
Ready To Find Your Dream Home?
When it comes to buying a home, it’s important to find a realtor with experience and who will work with you every step of the way. In today’s market, pre-approval is more important than ever - and the team at Chapel Hill Realty Group can help you navigate this step, and the rest, until you get the home of your dreams.
At Chapel Hill Realty Group, our agents’ local knowledge and expertise provide unsurpassed excellence in service and assistance to our clients - you’ll feel good about our team. Fill out our contact form online at ChapelHillRealty.com, or call us directly at (919) 942-4149 today!