In the current Central Ohio housing market being pre-approved is vital. With the market being saturated with buyers and the home inventory low, getting a great house at a great price takes great timing. May homes that hit the market are going into contract within days of being listed. In many situations buyer have a few days to present their highest and best offers to see if they can get a contract signed. Being pre-approved is going to help you be ready to make a great offer and get the home of your dreams. Here a few reasons to get pre-approved for a home loan.
1. Lets you know how much house you can afford. Being pre-approved will help you know what houses to look at. Although you may like that $440K house your budget can only stomach one in the $220K price rage. When you know what you can spend you can focus your home search and spend time looking at homes in your range.
2. Lets sellers know you are serious. In a multiple offer scenario, submitting an offer with your per-approval letter attached helps the seller see that your offer is legit. Compared to an offer that says "proof of pre-approval to be submitted in 3 days" your offer would stand out and move towards the top of the list.
3. Lets you know the type of loan you qualify for. You might want to get an FHA or VA loan to help with a lower down payment. Knowing whether or not you qualify for one is something you need to know in the beginning of the home buying process not after you start looking at homes. Also if you are looking into a condo some condo associations are not FHA approved. Once your agent knows what kind of loan you want they can help you find the perfect home to fit those requirements.
The pre-approval process is pretty easy, Jon and I have some great lender contacts if you are wanting to get some more information about getting pre-approved. Let us know what questions you have and we can get you started!