Homebuyers of all walks of life face a challenging yet extremely rewarding task upon entering today’s real estate market.
Whether you’re a first-time buyer or looking for your retirement home, getting a preapproval can fast-track your journey. A preapproval is the secret weapon in a complex and highly competitive market.
So before you begin shopping for a home, consider first speaking to a trusted lender to begin the process of a preapproval application.
Eliminate element of surprise
The element of surprise can complicate the home-buying process. The last thing you need is for something to come up that derails the transaction last minute. That’s why all homebuyers should take a serious look at a preapproval.
Because a preapproval is so thorough, you and your lending team will be well prepared for anything that comes your way. In fact, your lending team will be able to identify any potential roadblocks and address them before they become an issue.
Streamline the entire process
Buying a home is a lengthy process. Today, sellers would much rather work with a buyer who promises to work quickly.
A preapproval is a seal of approval from a lender that your application meets all the requirements for a loan. Not only will you be able to complete the home-buying process faster than expected, but you’ll also show the buyer that you mean business.
Extra bargaining leverage
Buying a home is all about negotiation. As a buyer with a preapproval, you can walk into an open house or pick up the phone with the backing of a committed lender as your formal partner. If a buyer must choose between someone who’s preapproved and someone who’s not, it’s a safe bet that the person with the preapproval will come out ahead.
Furthermore, you will be a step ahead of the entire team and your real estate agent can benefit from your preparedness as they begin to make calls and test the market on your behalf.
Time is of the essence, especially in a competitive market. When you get a preapproval, you have the luxury of knowing how much home you are approved for. The parameters of your budget make the home search much easier and more efficient.
With a budget in hand, you can strategically select homes with confidence that you can make the winning bid that gets the deal done.