Many buyers want to jump right into the home search without getting pre-approved. While the home search process is exciting and getting a home loan is less exciting, it’s extremely important to set yourself up for a successful home purchase.
You can think of a pre-approval as a map for your home buying process. It’s one of the most important things and it’s also the very first thing you should be doing when you’re considering purchasing a home.
It will give us a lot of good information about your budget so we can narrow down homes to check out. It also gives you as a buyer a lot of information about the type of loan that you’re going to have, as well as what type of down payment requirement you’re going to have.
In addition to the details of the pre-approval, what it shows potential sellers is that you’re a serious buyer. When making an offer, most sellers in this current market are going to require you to have a pre-approval. I’ve had some clients in the past where we were early in the process, we go see a home, they love it, and want to purchase it. But then we have to wait on the pre-approval process to determine whether they qualify to obtain appropriate financing. Waiting for a pre-approval can really slow the process down, and ultimately they were not able to make a purchase offer on that home because they weren’t ready for it.
One thing to keep in mind is that there are a variety of programs that can further assist with purchasing a home. You can find out what type and amount of loan you qualify for by working with a local lender. If you don’t already have one, we’d be happy to make the connection for you to get you started on the process of buying your next home! Call our team of professionals at (217) 422-3335.