Why Getting Pre-Approved Before Looking at Homes is Important
Posted by: real estate / Category: BuyingMany homebuyers say they are waiting to find the right home before getting pre-approved with a lender, and I let them know that is a bad idea. Everyone should get pre-approved before starting to look for a home, because it helps narrow down their search into homes they can afford, helps their negotiating ability, and helps them find the most home for their money.
A good faith estimate from a lender can make a big difference in negotiating an offer because it helps in writing that offer. If you know how much the closing costs and prepaid items will be, then you can ask the seller to help pay for these items. Not being pre-approved hurts the buyers negotiating ability by not having all the information such as loan type, closing costs, pre-paids, and interest rate, when the offer is written. Also giving the seller a copy of the pre-approval letter with the offer helps give the offer more credibility. Waiting to find the right home and then getting pre-approved slows down the offer process and hurts the chances of getting that home, because if someone else submits an offer on the same home with a approval letter, then they have a better chance of having their offer accepted.
Last but not least, waiting to get financing until after finding the right home decreases the amount of time the homebuyer has to shop around for the best lender/financing available. Homebuyers should get pre-approved first, then look for a home, shop around with different lenders while looking at homes, find the right home, and then decide on a lender within 1 or 2 days of writing an offer on a home.
John Cobb - Coldwell Banker SSk Realtors in Warner Robins GA
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Last 5 posts in Buying
- Buying a New Construction Condo - Warranty Protection - June 8th, 2009
- Buying a House With Monopoly Money - June 8th, 2009
- Did You Know the Government Will Give You Up to $15,000 For a Down Payment on a Home? - June 8th, 2009
- Property Appraisal - June 8th, 2009
- Get Free Housing Grant Money and Don't Pay it Back - June 8th, 2009
When buying a new construction condo in Ontario, the Tarion Warranty Corporation provides protection to buyers under the New Home Warranty Program. Membership of this program is mandatory for new construction builders by offering protection to buyers of new construction projects. Such protection includes: deposits, defects in the workmanship and materials and protection issues involving delayed closings and occupancies.
The program covers buyers for a number of items however the most important especially in this market is a deposit guarantee. With news about new construction condo projects not moving forward, it is a reassuring to know that the buyer is covered… Continue reading
The Weekly Homebuyer’s List in the Denver Post catalogs residential real estate sales in Colorado. The Homebuyer’s List for the week of May 24th totaled only 62 sales for all of Douglas County, CO. The low number of sales may not surprise many in the current market, but a closer examination of the problem reveals a strange disparity in housing prices. It may be easier and a little more fun to think of today’s market as a Monopoly game.
** The most expensive property conveyed last week in Douglas County, CO was for $1,050,000. That would be Boardwalk in Monopoly terms… Continue reading
If you’re getting ready to buy a new home then this article can save you tens of thousands of dollars in interest.
Did you know that the government will give you over $15,000 in order to make it down payment on a new home? Did you also know that if you need money for home repairs the government will give you money to repair your home? Did you also know that if you have a business that you would like to start the government will give you up to $100,000 to work from home?
The government gets money from for major corporations… Continue reading
One of the benefits of purchasing a home or land is the value that typically comes along with ownership. Many property owners are unsure about how their property is appraised and the factors that are considered in the property appraisal.
There are many different considerations that must be taken into account when appraising property, including market, income, and cost approaches. Appraisals are typically done every few years, but may be done every year in areas with significant activity or growth. Homeowners may often request an appraisal of their property for the purposes of selling the home or simply evaluating how much… Continue reading