Why Do I Need To Be Pre-Approved?

Tips & Resources for Buyers
Why Do I
Need To Be Pre-Approved?
The process of purchasing a new home is exciting on many levels, whether you’re in the market for your first home, upgrading, or downsizing to fit your needs. Most aspiring homeowners start the hunt online, but they are skipping quite possibly the most crucial step: getting pre-approved by a mortgage lender.

What exactly is a pre-approval letter? A mortgage pre-approval letter from a qualified lender assures all parties involved in the process of a real estate transaction that the buyer (you), has the ability to complete the purchase of any home which meets the lender’s guidelines.

You may be thinking, “Why do we need to be pre-approved? Why can’t we start looking at homes and put an offer on one we love?”. Pre-approval letters benefit all parties involved with the home-buying process. Let us explain why they are a necessity.

Why are Pre-Approval Letters Necessary?

Heath Keller at Guild Mortgage can help start your house buying process with confidence!

Buyer’s Perspective One of the most devastating things that can happen to you in the home buying process is falling in love with home you can’t afford. Before you begin looking seriously, get pre-approved so you are able to set a budget for your home search and know exactly what you can afford. By doing so, you are able to confidently put forth a contract on the dream home of your choosing.

While pre-approval letters may bring you back to reality, they may also surprise you. Maybe you’re in a position thinking you are unable to afford a home which can meet your list of must-haves, but then you receive your pre-approval letter and are able to open your search parameters in order to meet your particular needs and wants. No matter your particular circumstances, having your pre-approval letter gives you the confidence of knowing exactly you can/can’t afford while conducting your house buying search.

WEBER ELITE REALTY
Get Pre-Approved And
Search with Confidence

Seller’s Perspective Sellers want to take their current home off of their plate so they are able to move into the next chapter of their lives. There’s a reason they’re moving, and they most likely want the process to be as short and sweet as possible.

Say they receive two offers for their home. One is from a couple without a pre-approval letter and another without a pre-approval. Who’s offer would you choose? The couple that is already pre-approved. Why? Because this couple has proof that they are financially able to buy the house. They have a bank or financial institution willing to provide them with a pre-approved loan amount. Given the competitive real estate market in the Greater St. Louis Metro, not getting pre-approved for your loan can mean the difference between your dream home and the search back on.

Prioritize Your Wants vs Needs
When clients come to us pre-approved, it allows us to do an elite job; by addressing your list of must-haves and wants (link to other blog article/checklist) to find your perfect home.

Realtor’s Perspective Realtors will tell you they prefer to work with clients who are pre-approved. For us, this means we can submit, negotiate and close on your new home with supreme confidence. Clients can tell us what their dream home looks like and we can search endlessly for it, but until a budget is determined all of that searching is unproductive.

Say they receive two offers for their home. One is from a couple without a pre-approval letter and another without a pre-approval. Who’s offer would you choose? The couple that is already pre-approved. Why? Because this couple has proof that they are financially able to buy the house. They have a bank or financial institution willing to provide them with a pre-approved loan amount. Given the competitive real estate market in the Greater St. Louis Metro, not getting pre-approved for your loan can mean the difference between your dream home and the search back on.

WE CAN HELP
Partner with The Best
Upgrade to Elite Today
Now that you know how crucial it is to be pre-approved and how it helps everyone in the buying process, take the next step! Get in touch with Heath Keller to start your loan application and then contact Weber Elite Realty to start your home buying adventure! Build your credibility as a buyer and find the home of your dreams
Watch Video
Watch Video
style="fill:;" fill=""