Thursday, October 14, 2021 / by Vyral Marketing
3 Reasons to Get Pre-Approved Before Buying
Why is it important to get pre-approved before viewing properties? There are three main reasons:
First, you need to know how much you qualify for and can afford. Your lender will tell you how much you qualify for based on a combination of your credit score, income, and debts. How much you can afford solely depends on what fits into your monthly budget for living expenses.
Second, getting pre-approved early will help you identify all of the property’s purchasing costs before growing attached to it. When sellers have multiple buyers interested in their home, they can be pickier with who they allow to walk through it. Many sellers don’t want to allow buyers to walk through their homes without a pre-approval letter or documented proof of funds.
"You need to know how much you qualify for and can afford."
Third, pre-approval helps you know what alternatives you’ll have if you need extra out-of-pocket cash to cover a low appraisal. For example, if you’re planning to put a certain percentage down, but the home appraises for less than the agreed-upon purchase price, is there another loan option that would still allow you to purchase the home but with different terms? This type of information is very helpful to know before you fall in love with a specific home.
If you’re considering buying a home, we’d love to get you started by getting you pre-approved. If you want to begin the process or have any questions, call us or visit our website. We’d be happy to help you.