6 Reasons Your Agent Wants You Pre-Approved Before Showing You Homes
Ever had an agent deny to show you a home because you weren’t pre-approved for a mortgage? It’s not because they’re mean, or they don’t value your business… it’s actually because they’re looking out for your best interests.
Let’s face it, shopping for a home before getting pre-approved for a mortgage is like walking into a grocery store without a wallet. You may have the desire to buy, but you lack the ability. Let’s cover some basics…
What is a mortgage pre-approval?
In a nutshell, a mortgage pre-approval is written assurance from a lender or broker that you’re able to borrow money to purchase a home up to a certain amount. It’s based on the income, employment and asset documentation you supply at the time of application, in conjunction with your credit history. So let’s look at the 6 reasons you should get pre-approved.
1. It carries more weight than a “pre-qualification”.
A pre-approval differs from a pre-qualification. With the former, the lender has actually checked your credit and verified your documentation to approve a specific loan amount (usually for a particular time period such as 30, 60 or 90 days). A pre-qualification can be useful as an estimate of how much you can afford to spend on your home, but it’s a less accurate indicator of your ability to purchase. A pre-approval always carries more weight.
2. You’ll know how much house you can afford and if it fits your personal Budget.
Getting pre-approved before you begin house hunting allows you to know how much house you can realistically afford. Knowing this narrows down the options and makes the selection process more efficient. Not to mention, it protects you from the unpleasant surprise of realizing the home you fell in love with doesn’t fit your budget.
3. It adds clout to your offer.
In many markets, homes attract more than one offer. If the sellers are weighing one offer against another, they may lean towards the one accompanied by a pre-approval letter. That’s because pre-approvals instill confidence that the buyer is financially capable of purchasing their home.
4. It could increase your negotiating power.
In addition to strengthening your offer when compared to buyers who haven’t taken this step, getting pre-approved may give you the upper-hand when negotiating the price. If the homeowner is eager to sell, they may be more willing to accept a lower offer from someone they’ve been assured is financially capable of purchasing their home.
5. It saves time.
Obtaining a mortgage is a lengthy process. Getting pre-approved ahead of time shortens the time between contract to close — this way you’re ready to proceed with finalizing the mortgage once you’ve found the home you want to purchase.
6. Without it, most agents won’t work with you.
Makes sense, too. Right? Think about it: when you hire an agent, he/she will invest countless hours showing you homes over the course of your house hunt. If you were in their shoes, wouldn’t you want assurance that your hard work would lead to a favorable outcome for both you and your client?
Contact our preferred lenders:
Mortgage Companies We Trust
The Borders Team
CENTURY Mortgage
Steven Hedgespeth
9931 Corporate Campus Dr. #1000, Louisville, KY 40223 Direct #
502-425-7740 Email steven@centurymortgage.com
Fairway Independent Mortgage
Jason Lawrence
2020 High Wickham Place, Suite 101 Louisville, KY 40245 Direct #
502-905-5287 eFax # 866-748-7178 email jlawrence@fairwaymc.com
First Commonwealth Mortgage
Jason Justice
Senior Mortgage Banker
502-554-9368
502-641-6368 cell
jjustice@firstcm.net
You do not have to use the suggested companies on this list, however
they are companies we have worked with in the past and have excellent
communication systems with buyers and Realtors. Good Loan officers
are hard to find.
The Borders Team