Pre-Approval for Real Estate transactions do make the possibility of your desired outcome and timing increase in your favor. They’re not a guarantee, but most definitely an advantage for you.
As a buyer, there are several advantages to getting pre-approved. Most importantly, pre-approval gives you an accurate idea of price range and property affordability. It ends the pressure of getting finances in order while the deal is underway. And it eliminates the anxiety of not knowing if you’ll be able to get the house. It also removes the worry of waiting for the powers that be to give a ‘yes’ or ‘no’. And removes the stressful time spent waiting to hear back from them with any news.
Pre-approval will enable you to target your home search and streamline the process of viewing properties. You will be armed with knowledge and confidence knowing what bankers and real estate investors will say about your credibility and finances before you begin your search.
A pre-approval letter also helps you to get the advantage to get the home you desire. By having pre-approval it shows real estate agents and sellers that you’re a serious, credible, and sound potential buyer. Plus, you are able to act faster when you discover your must-have home because the mechanics of the deal are already in place. Don’t let your dream property get snatched away from you because lenders are slow to get the proper paperwork in place. Get your pre-approval letter.
A pre-approval letter can make you stand out in a competitive real estate market. If you make an offer, without a pre-approval, it’s usually not taken as seriously as if you had pre-approval. Also, all things being equal with offers on your desired property, an offer with pre-approval gets the go-ahead.
Some sellers are now requiring buyers to submit a pre-approval letter with buying offers. While it is certainly true that having a pre-approval letter does not guarantee acceptance of your offer by the seller, for the reasons stated above, it gives sellers peace of mind. It’s best to have it and it not be required, than it to be required and you don’t have it.
Don’t miss out on your new home. As part of the buying process you will need to get approved. So instead, get pre-approved, this way it is on your schedule and your terms. When it comes to getting approved, sooner is much, much, better than later. Do yourself a favor, and get pre-approved to begin the path to your new home. Pre-approval gives you the buyer an advantage.