Serious buyers should seek pre-approval for a mortgage
“Don’t worry about being pre-approved for a mortgage”
This is advice that a buyer is likely to get from a friend or relative rather than an online article or a good agent. The idea is that a pre-approval isn’t official anyway and that if you’re just starting to look it’s not worth the time or hassle. Wrong.
Serious buyers need to understand how important that letter truly is. If the buyer is not pre-approved for a mortgage before looking at homes, they may not be considered in the running for a home they love. Sure, some agents will tell you that's fine, but many seller's agents will require it, request it or suggest to their seller to not consider your offer.
A pre-approval helps a buyer to be clear about their actual budget; to know what loan program will fit them best and then what will be needed for their down payment and their closing costs. Then their agent will know which "houses will qualify" for specific loan types.
Many homes in good condition hit the market and receive multiple offers within days. By the time a buyer then goes in for a pre-approval, the home they wanted will probably already be purchased by someone who was prepared to buy.
Your experienced Realtor will give you the names of mortgage lenders who take good care of their clients. Just like buying a car, buyers should get a second opinion to compare the costs and timeframes.
This is advice that a buyer is likely to get from a friend or relative rather than an online article or a good agent. The idea is that a pre-approval isn’t official anyway and that if you’re just starting to look it’s not worth the time or hassle. Wrong.
Serious buyers need to understand how important that letter truly is. If the buyer is not pre-approved for a mortgage before looking at homes, they may not be considered in the running for a home they love. Sure, some agents will tell you that's fine, but many seller's agents will require it, request it or suggest to their seller to not consider your offer.
A pre-approval helps a buyer to be clear about their actual budget; to know what loan program will fit them best and then what will be needed for their down payment and their closing costs. Then their agent will know which "houses will qualify" for specific loan types.
Many homes in good condition hit the market and receive multiple offers within days. By the time a buyer then goes in for a pre-approval, the home they wanted will probably already be purchased by someone who was prepared to buy.
Your experienced Realtor will give you the names of mortgage lenders who take good care of their clients. Just like buying a car, buyers should get a second opinion to compare the costs and timeframes.