First Things First: Before Shopping for a New Home, Do This!
Before calling a realtor to help you shop for your new home, there’s a vital first step that you need to take! Even if you know what neighborhood you want to look in, what floorpan you need, and what price range you can afford, don’t schedule any showings before you’ve obtained a pre-approval letter for a mortgage.
There are a few reasons why it’s essential to obtain a pre-approval letter before shopping for a new home. If you still need persuading, read on!
Save Time
Who has time to throw away these days? Even if you do (lucky you), your realtor probably does not. Neither do sellers. In today’s market, sellers have a critical eye trained on any potential deal that looks like a time-waster. Remember, when a showing request is made, a diligent seller puts in hours of cleaning and staging time. Your realtor gives up hours of her day to work with you. If it comes out that you can’t afford the home (or that you’re “just browsing” and not serious enough to obtain pre-approval)? Well, you know the old adage: “Fool me once…”
The Numbers May Surprise You
Avoid heartbreak by knowing in advance what you can and can’t afford. If you’re convinced in the core of your being that you can afford something, you may be tempted to go ahead and look. You might even fall in love with your dream home, only to realize that you’ve forgotten to factor something into your budget. (Or on the flip side, maybe you’ve miscalculated and actually can afford that home that you’d refused to let yourself look at.) Finding out the cold, hard facts on the front end will allow you to keep your shopping expectations in check.
It Puts You in a Stronger Position to Negotiate
Negotiation is a part of the home buying process, and you’ll want to come in strong. When a seller sees that you’ve attached a pre-approval letter to your offer, they know that you mean business. Further, because being pre-approved often speeds up the closing process, you’ll have the flexibility to make non-monetary offers (such as flexibility on the closing date and inspection date) as a part of your negotiation tactic.
All things considered, it makes sense from every angle to obtain a pre-approval letter before shopping for a new home. Take that first step, and then you’ll be ready to hit the ground running.