Why You Must Get Pre-Approved to Buy a Home

Buying a home is a life changing not only because of the fact that where a home is located decided commuting time to work, the community, etc. but also because buying a home will almost always require a buyer to take out a loan. Because homes are so expensive, very few buyers have the entire amount of the mortgage saved up. When the time comes to actually make an offer on a home, a buyer will want to know how much they can legitimately offer, and a seller will want to know if the buyer is legit. The key to solving this problem is pre-approved. Here are five reasons to get pre-approved.

The first reason to get pre-approved is that the seller will respect a letter of pre-approved much more than an a letter of pre-qualification. A letter of pre-qualification will tell a seller that the potential buyer called a lending institution and told them there information in an informal setting and then the institution sent a letter over the fax machine saying the buyer seems qualified if what they say is true. A letter of pre-approval is much more involved to obtain. A lending institution will check out a buyers information. They will find out what there employment really is and how much they make, their credit history, their current debts etc. A letter of pre-approval will show a seller that the buyer is serious and will most likely not fall through during the later stages of the buying process.

The second reason to obtain a pre-approval is how much stress the buyer will have off their shoulder knowing how much they can offer on a home. A buyer can initially accept a sellers offer or counter offer with a lower price. The process is so much better if the buyer know exactly what their ceiling is or in other words, how much can they afford.

The third reason is the seller will be much more willing to negotiate with a buyer if the seller has confidence the buyer will make good on their offer. If a seller has a great home, with a reasonable offer in a sellers market, the seller will most likely be dealing with a few buyers who are interested in the home at the same time. The seller will want to immediately take the buyers who are pre-approved more seriously and give them more of their attention and focus.

The fourth reason a buyer will want to get pre-approved is the effect it will have on their realtor. Buying a home is a super complicated process from beginning to finish. Having a realtor who really has experience, knowledge and most importantly, drive, is absolutely crucial. A buyer who finds a great realtor with experience and knowledge will have a hard time getting them to be driven if they doubt the ability of their client to purchase a home. When a real estate agent knows or sees the letter of pre-approval, they will instantly know their buyer is serious and be much more driven to find them a great deal.

The last word on pre-approval is to mention that a lending institution is still able to change their mind depending on the neighborhood, the appraisals, and inspections. With that said, the pre-approval will start a working relationship with a lender and prove to be beneficial in many ways during the home buying process.

Juhlin Youlien writes for Our Best Real Estate which is a qualified real estate website dedicated to Gilbert AZ homes for sale and Chandler Arizona real estate. If you are interested in finding a home in any major AZ city, please feel free to browse our website and choose from any of the thousands of featured homes. Our Best Real Estate is dedicated to bringing you all the information you need to buy the right house for you.