Why do some buyers get pre-approved before looking at property, and others don’t? Why wouldn’t they want to? There are very good reasons for getting a pre-approval in place.
For starters, having a solid number to work with is important. Staying within that bracket when making a purchase gives a bit of breathing room down the line. Moreover, the whole process shows exactly where you stand financially. Going through a pre-approval and sticking with your budget means that you will be able to own, maintain and pay off your home in relative comfort.
The pre-approval can really help at offer time. Think about it from the sellers view point; two offers, one pre-approved and the other isn’t. The offers are the exact same otherwise. Which one would you entertain first?
Being pre-approved means you are serious about buying and you’ve got a lender’s trust. Anything less puts you into tire kicker territory and your agent better be great at convincing the seller otherwise.
What keeps people from getting pre-approved? Lethargy, fear, embarrassment, worry and perhaps denial come to mind. Change is tough and buying a house is a huge responsibility. But one way or the other you will need to work with a lender, and putting it off until you make an offer does not make sense.
If you are serious about purchasing a home, get pre-approved. There is absolutely no downside to doing so and rates are usually locked in for 120 days. Put the advantage in your court when making an offer. Know what you can afford and choose accordingly. Be smarter than your competition!