Why get pre-approved before looking for a Palmetto home? Shouldn’t it be “after” looking for a home? Do I have that backward? No, you read that right you should get pre-approved before shopping for your new home. And here’s why …
You’re a Credible Buyer
Imagine a seller looking at two offers – same amount down, same bottom line price offer with one exception – one of the buyer’s has been pre-approved. Which one will they likely accept and which will be declined? If you were the seller, you would likely take the offer where the buyer had been pre-approved. For one thing, in their minds, it will save time and the transaction will close sooner.
You’ll Know What You Can Afford
Agents see it happen a lot – they show property to buyers who fall in love with a home. This is the home they’ve been looking for and they can’t wait to move in. Then, they apply for the home loan only to find that they don’t qualify for that home. If they knew their limits, they could shop and fall in love with homes within their budget.
Bottom Line is More Realistic
Lenders take everything into account – things the average first-time buyer might not think about like taxes, insurance, Homeowner Association fees, and debt-to-income ratio. At the same time, you can’t afford to dismiss any of these factors. Taxes, insurance, and HOA dues are required. Debt-to-income ratio shows on paper whether you can afford the monthly payments or not.
Potential Credit Problems
When getting pre-approved before looking for a Palmetto home, you can ward off potential problems that could slow down or stop the purchase of a home. There could be errors on your credit report. You can explain, show proof of correcting, or correct credit problems. Then you’re ready to start shopping. It’s a great way to eliminate disappointment down the road.
If you’re looking for a lender, just go to my recommended lenders page and give them a call. Make sure you let them know I sent you.