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Friday, November 9, 2007

5 Reasons for Home Buyers to Get Pre-Approved

If you are interested in buying a new home for the first time it can be stressful. There are many things to consider. One of which is getting pre-approved for a home loan. Before spending time looking at house after house get pre-approved for a home loan. By getting pre-approved for a home loan you are able to do the following:

1. You know how much home you can afford and only spend time looking at those homes. No finding your dream home only to discover that you can't get financing.

2. When you get pre-approved for a home loan it speeds up the closing on the home. This is just one more step you won't have to do when you find your home. Trust me; it is a step you want to have out of the way. Especially if the real estate market is hot and you are worried about losing the home you want.

3. Buyers are more attractive to sellers and real estate agents when they are pre-approved for a home loan. It tells the seller that you are serious about buying a home. Whether that be their home or not depends on how much you like it.

4. By going through the pre-approval process lenders are able to spot any potential problems that might make obtaining a home loan difficult. It allows you to resolve many of these issues even before you have found the home you want.

5. Finally, when you are in the process of getting pre-approved for a home loan it enables you to learn and correct any credit errors in which you discover. Pay down high debt balances or it may provide you the time needed to accumulate additional funds for a down payment or potential closing costs.

Resolving issues before you try to close on a home and apply for the loan is why it is important to get pre-qualified. By doing so you will save yourself time and greatly reduce the frustration and anxiety associated with buying a home.


By Jason Deines

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