Here’s why getting Pre-Approved is Critical to your Home Buying Success

May 24, 2021

Before you actually start the house-hunting process, get pre-approved. This step is crucial, especially in the current ultra-competitive market. When you’re ready to find a home, the last thing you want to do is limit your possibilities, but if you don’t earn a loan pre-approval before you start looking, you might actually prevent yourself from finding—and buying—your dream home.

Below, the experts at realtor.com lay it all out for you:

Most homeowners start out by browsing homes for sale online to get an idea of what neighborhoods and housing styles they like. If you don’t know what you can afford, you may be looking out of your price range and wasting your time. You may also be looking below what you would have qualified for and not getting the right home for you. If you start off by getting a pre-approval, you can sort by price, identify the right neighborhoods, and find your dream home much faster.

The bottom line is this that realtors prefer to work with home buyers who have a pre-approval in hand for two reasons. First, a realtor knows the deal isn’t likely to fall through, and second, when they know what you want and what you can afford, realtors are able to do a better job of finding your dream home. And, if you have pre-approval, a realtor would know what exactly what to focus on and would be able to suggest different neighborhoods, sizes and conditions of homes to match your needs—making it easier to get you exactly what you want.

Once you find the perfect home, the next step can go two different ways depending on a pre-approval. If you’re not pre-approved and you find a home you want to make an offer on, you’re taking a gamble. Realtors and sellers are less willing to accept offers from a buyer without a pre-approval. Odds are, they’ll go on to the next offer—and you’ll miss out. However, if you are pre-approved, you have more room to haggle. Sellers may be more willing to lower the asking price, include appliances, cover closing costs or make other allowances to work with a pre-approved buyer.

Finally, skipping this step can wreak havoc on your stress level. If you aren’t pre-approved, you’ll spend longer looking for homes. You may not feel like you’re getting great service from a realtor. You may get turned down once you’re ready to make an offer. All of this adds more time and stress to what should be a very exciting time in your life. On the other hand, if you’re pre-approved, you have less to worry about: you know you’re a qualified buyer, you know there are lenders willing to work with you, and you can feel pretty confident when you make an offer.

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Photo Credit: Rimma Dikikh / Shutterstock.com

Written by: Vipology Staff Writer

Getting pre-approved is crucial in the home buying process Pre-approval for home buyers realtor.com Why get pre-approved before shopping for a home

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