Why Should Getting a Pre-Approval be Your First Step in Buying Real Estate?
The real estate market across the country has become ultra-competitive with more buyers looking for dream homes than homes for sale. A competitive buyer’s market means you must be prepared before you start searching for the right home. Getting a pre-approval first shows you’re serious about buying and helps to even the competition.
Even in a market that’s not as competitive, a pre-approval shows you what you can afford. This allows you to shop with confidence knowing you won’t be turned down for the home you fell in love with.
How to Get a Pre-Approval
While the pre-approval should be the first step in buying real estate, it may actually start with choosing your agent. Good real estate agents have established relationships with lenders and can point you in the right direction.
Once you’ve selected a lender, you will need to fill out the application and provide information to support the application, such as proof of income, residential history, proof of down payment and your credit history.
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When you take the time to get a pre-approval first, sellers will take you seriously. It will also help to speed the process up after your offer has been accepted.