The One Thing You Should Do Before Buying a Home
Most people begin their house hunt browsing online for homes for sale to get an idea of what neighborhoods and housing styles they like. You might stop into an open house or two for the same reason. As soon as you speak to a Realtor, one of the first questions is if you are “pre-approved” for a mortgage.
It may seem like they’re being nosy, but it’s a necessary piece of information. It’s not because they want to know how much you’re going to spend – they just need to know that you are a serious and qualified buyer.
It’s a matter of being diligent about managing their business. Realtors need to know they’re working with someone who can actually buy a house because they don’t get paid until, and unless, the transaction closes. Working with someone who is pre-approved still doesn’t necessarily guarantee they will make money, but it is an essential part of the first steps.
Realtors have a fiduciary responsibility to their clients, so they need to know how much you’re pre-approved for in order to guide you through the experience with competently and sensibly.
For instance, after weeks or months of house hunting you find a home you want to buy, only to find out you can’t afford it. This results in heartbreak and distress – for both the home buyer and the Realtor. A mortgage pre-approval is when the lender agrees to a specific loan amount, before you find a home to buy. It involves an application, a complete review of your credit history and validating the information you’ve provided.
“In this competitive market, it’s best for buyers to find a very strong, local lender,” Suzanne Holland, with The Platinum Group, Realtors said. “It’s equally critical for buyers to have a full-time realtor with plenty of experience to help them grasp the current conditions of this market.”
Having a pre-approval ahead of time can also give more weight to an offer you make on a home, as well as being able to close more quickly. Sellers look more favorably at offers that are not contingent on loan approval, especially in competitive markets.
Pre Approvals are just part of buying a home if you want to have any kind of success, and keep in mind – pre -qualifications won’t help you much. Pre-qualification just means that a lender evaluated your creditworthiness and determined that you’ll likely be eligible for a loan up to a certain amount. Most often, the pre-qualification letter is an approximation—not a promise.
Once you have a pre-approval, it’s equally important to have a Realtor representing your best interests during you home search.
The Platinum Group Realtors are your local experts in Colorado Springs. With over 80 percent of their business coming from personal referrals, they don’t focus on more business, just better business. The Platinum Group guarantees platinum service and platinum results in every price range, in every neighborhood.
For a no-obligation consultation with anyone of The Platinum Group realtors, call 719-536-4326.