If you’re planning to buy a home, whether in Atlanta or anywhere else, it’s a good idea to get pre-approved before looking for houses. This is a fairly simple process in which a mortgage broker assesses your current financial situation and issues a pre-approval letter that gives a preliminary price range for how much home you can reasonably afford. While this is a non-binding letter that does not guarantee you a loan nor is it mandatory to have this before starting your search, getting pre-approved can definitely help streamline the process and work to your advantage. Here are some important reasons why.
Find Your Home More Quickly
By avoiding homes that are out of your price range, you will avoid the pitfall of falling in love with a home you can’t actually afford. You will also avoid wasting precious time and energy during your search. In a hot market like Atlanta where homes can sell quickly, it is important to hone in on a range of homes and neighborhoods that are suited to your budget, so if you find something you like, you can make an offer before someone snatches it up.
Narrow The Search More Efficiently
If you get pre-approved before you start looking for houses, your real estate agent will have a much better idea of your price range and will be in a better position to select homes that check off most of your wish list without wasting time on homes you would not qualify for. A pre-approval letter helps you focus your search so you can find the perfect home more quickly.
Increase Your Chances For A Contract
Simply put, home sellers are more likely to accept an offer from someone who is pre-approved than someone who is not, because they know the loan is more likely to be approved. If multiple offers come in from different buyers, the seller will usually give you preference if you are pre-approved. Simply put, it makes you more competitive as a buyer and increases your chances for getting the home you want.
Streamlines The Lending Process
While pre-approval is no guarantee of a loan, if you apply for a mortgage from the same broker who first issued the pre-approval, it can help streamline the sometimes stressful process of obtaining a mortgage. After all, the lender will already have an idea of how much home you can afford.
It takes just a few extra minutes up front, but if you take the extra step of getting pre-approved before looking for houses, you’ll make your home search more simple, more streamlined and more pleasant overall—and best of all, you’ll have a better chance of buying a home that truly works for your needs. To learn more, contact Atlanta Fine Homes Sotheby’s International Realty at 404.237.5000.