Why Does My REALTOR Want Me To Get Pre Approved Before Showing Me Homes

Why Does My REALTOR Want Me To Get Pre Approved Before Showing Me Homes

A mortgage pre-approval is written assurance from a lender or broker that you’re able to borrow money to purchase a home up to a certain amount. It’s based on your credit history, income, employment, and asset documentation you supply at the time of application.  Here are 6 reasons why you need a pre-approval prior to going on house showings.

  • A pre-approval carries more weight than a pre-qualification. 

    • pre-approval differs from a pre-qualification. With a pre-approval, the lender has checked your credit and verified your documentation to approve a specific loan amount (usually for a particular time period such as 30, 60 or 90 days). A pre-qualification is based on preliminary information provided to the lender which has not been validated and can be useful as an estimate of how much you can afford to spend on your home, but it’s a less accurate indicator of your ability to purchase. A pre-approval always carries more weight.

  • You will know how much house you can afford. 

    • Getting pre-approved before you begin house hunting allows you to know how much house you can realistically afford. Knowing this narrows down the options and makes the selection process more efficient. Not to mention, it protects you from the unpleasant surprise of realizing the home you fell in love with doesn’t fit your budget.

  • It adds clout to your offer.

    •  There are many circumstances where homes attract more than one offer. If the sellers are weighing one offer against another, they will usually lean towards the one accompanied by a pre-approval letter. That’s because pre-approvals instill confidence that the buyer is financially capable of purchasing their home.

  •  It could increase your negotiating power.

    • In addition to strengthening your offer when compared to buyers who haven’t taken this step, getting pre-approved may give you the upper-hand when negotiating the price. If the homeowner is eager to sell, they may be more willing to accept a lower offer from someone they’ve been assured is financially capable of purchasing their home.

  • It saves time.

    • Obtaining a mortgage is a lengthy process. Getting pre-approved ahead of time shortens the time between contract to close — this way you’re ready to proceed with finalizing the mortgage once you’ve found the home you want to purchase.

  • Without it, most agents will not work for you.

    • Have you ever had an agent deny to show you a home because you were not pre-approved for a mortgage? It’s not because they’re mean, or they don’t value your business… it’s because they’re looking out for your best interests.  Let’s face it, shopping for a home before getting pre-approved for a mortgage is like walking into a grocery store without a wallet. You may have the desire to buy, but you lack the ability.   Makes sense, too. Right? Think about it: when you hire an agent, he/she will invest countless hours showing you homes over the course of your house hunt. If you were in their shoes, wouldn’t you want assurance that your hard work would lead to a favorable outcome for both you and your client?  I can provide you with a list of mortgage lenders if you do not have one.  Just let me know. 

Rhonda Douglas Headshot
Phone: 334-590-2984
Dated: February 28th 2017
Views: 198
About Rhonda: Rhonda is a family woman with a devotion to God, her loving husband and three wonderful children. Fi...

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