Ready to take that leap and start shopping for your very own home? Perhaps you’ve been renting, and are finally ready to transition into ownership. One of the most pivotal steps to this process is getting preapproved for a loan before you start shopping, and here are some of the most important reasons why:
- The preapproval process helps you to establish an accurate price point around which you can realistically shop. Searching for a new property that is not within your budget can not only waste valuable time in a fast paced market, but it can create impractical ideas and expectations as you continue to search for the perfect place to call home.
- The preapproval process also helps buyers to visualize the total cost of a transaction by disclosing possible transaction fees like taxes and title as well as homeowner’s insurance. Knowing these requirements ahead of time can eliminate possible stressors in the future.
- A preapproval letter from your lender shows that you are serious about pursuing a successful transaction. When so many people like to casually shop around, this simple step will help to ensure that your needs are a top priority.
- Let’s face it. The most desirable homes never stay on the market for long. When you come across an unbeatable deal, being preapproved allows you to submit an offer in the most efficient amount of time. Who knows? While you are taking that extra day to apply for a bank loan, some other shoppers may be putting in another offer on the home of your dreams. Don’t let your ideal house slip away because you were not fully prepared before you started searching.
- A preapproval letter also gives your Realtor a bit more leverage when it comes to making offers that are less than the listing price. Sellers are more likely to negotiate with buyers who have completed the steps necessary for initiating a contract. The same can be said about navigating aspects of a sale like appliances, closing costs, and other flexible details. The bottom line: sellers prefer to work with someone who has been preapproved verses those who have not.
- If you are seeking an expedited transaction, getting preapproved prior to shopping will reduce the time necessary for the remaining steps to be completed once you’ve found your dream home.
If you are serious about buying a home, you will need to get approved for a bank loan at some point. Choosing to complete this step first, however can simplify and streamline the entire process. If you are a prospective home buyer, we at Lime Rock Realty LLC would love the opportunity to assist you with finding the house of your dreams. Give us a call today!