Why Get Pre-Approved With A Lender Before House Hunting With An Agent

As much as I enjoy driving around and viewing the inside of beautiful homes – especially a home of my dreams – the best time to actively house hunt with an agent is after you have spoken with a lender (unless you’re paying for a house with all cash). That lender will take the financial information you give them and tell you the best loan options available for your situation.

Not only will the lender tell you about the available loan programs to help you purchase your home, but he/she will also tell you about available grants (money you don’t have to pay back) toward down payment assistance. Based on your income, debt, savings and other relevant factors, the loan officer will be able to tell you “how much house” you can afford or the sales amount.

Without taking this initial step, here’s what can happen:

1. Instead of calling a lender, you first call a real estate agent, like me.

2. If the agent doesn’t do their due diligence to ensure you are pre-approved for a specific purchase amount, the agent takes premature steps toward scheduling house showings.

3. At this point, you’re just window shopping.

4. You say that you love a house and want to put in an offer.

5. Now, you have to reach out to a lender. By the time you’ve gone through the process to be pre-approved, the house may be under contract and off the market.

6. You’re disappointed and heartbroken. Not to mention, if the lender says that there are additional steps to take (i.e. increase your credit score, lower debt, etc.) before being pre-approved, you’re now doubly upset. Not only are you upset, but you’re also discouraged from engaging in the homebuying process at all.

How about we skip these dramatics and put first things first.

Let me say that putting first things first doesn’t guarantee a seamless homebuying process, but it sure puts you in a better position for one.

Here are some reasons why it’s best to get pre-approved with a lender before house hunting with an agent. Keep these in mind when you’re tempted to put the cart before the horse:

• You show up as a prepared buyer, and a prepared buyer is a serious buyer. Sellers look for serious buyers. Sellers take the time to clean their homes (ideally), manicure their lawns, spruce up their staging furniture and even invest in upgrades such as new appliances, fresh paint and maybe even new floors. Sellers don’t do these things for “hopeful” buyers. They’re preparing themselves for equally prepared buyers.
• It makes for a more pleasant transaction for all parties involved, including not only the seller but also your agent. When your real estate agent knows the purchase amount that has been pre-approved by a lender and not just your budget, then we can both benefit from a more structured and guided process. We can make the most of our time together during house hunting.
• When you’ve finally found the home that brings peace to your heart, we’re ready to pull the trigger with an offer and no delays.

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If you didn’t know these things before and made the mistake of calling an agent to show you a house before being financially prepared, it’s OK. Because now you know. You can now move forward, doing your homework and following the guidance of a trusted lender, so that when you find the home of your heart’s desire, you’ll be READY for it.

And when you’re ready for it, you know who to call – J NICOLE WITH REZULTS REALTY at 601-896-8072!