So, you’ve just found the perfect home for you and your family.
You’ve searched the Internet for what seems like countless hours to find the right home, in the right neighborhood, close to all the things you enjoy doing.
You’ve driven by the home on multiple occasions, so much that the neighbors have already asked you when you’re moving in.
You’ve started imagining what life will be like in that home.
The day has come, you finally get to tour the inside of the home, and you decide to make an offer.
You can practically see the keys in your hand!
Not so fast!
The Realtor you just met has told you that there are multiple offers on the home, and you must have your best offer in by tonight. On top of that, the Realtor wants a pre-approval!
What? How can this be?
This pre-approval thing must just be a technicality, right?
Surely the current homeowners will understand that this home is meant to be yours and why let this pre-approval thing get in the way, right?
Wrong, without this pre-approval your perfect house will belong to someone else.
Don’t let this happen, keep reading to understand the basics of a pre-approval so you aren’t caught off guard when buying your next home.
Don’t worry, it’s not nearly as tough as math class!
Let’s begin with what a pre-approval is.
A pre-approval simply refers to the process a house hunter (you) undergoes to begin the process of securing financing for your first or next home. The only way to forego this process is to be a “cash buyer”, these are the people who can buy a home, in full, with the money they currently have in their own bank account.
Getting a pre-approval is a simple process that any qualified Realtor can help you with. A Realtor can provide you with contact information for loan officers who can help you begin the pre-approval process. The pre-approval allows a loan officer to gather the needed information from you to best determine what you can afford to spend on a new home.
This process allows the house hunter to search for homes within a pre-approved price range so there are no surprises for the buyer and/or seller. A pre-approval provides you with much-needed information so you can ensure your ability to make payments and feel comfortable in your new home.
The pre-approval process also is the beginning of the loan process that you will then complete after you have found a home, placed an offer, and that offer has been accepted by the seller.
Simply put, the pre-approval is really your first step to owning your next home.
Don’t let this simple process deter you from beginning your hunt for a home. Allow the pre-approval process instead to be the way you can make sure your dream home doesn’t turn into your nightmare home.
Still, have questions?
Feel free to reach out to us and we will be happy to help you walk through this process.
Until then, happy hunting!