Getting a pre-approval has always been an important, initial step in the homebuying process. But today, in the age of coronavirus, pre-approvals have become more important than ever. Here are just a few reasons why.
There Are No Strings Attached
Just because you get pre-approved for a loan doesn’t mean you need to move forward with buying a home. You can receive your pre-approval and decide you want to wait until you can afford more home. Or you can get pre-approved and then get a better offer from a different lender. The process is all about fact-finding and making sure you have all the information before deciding to move forward with purchasing a home – or not!
You Can’t Go In a Home Without a Pre-Approval
With the Coronavirus pandemic still ongoing, sellers are hesitant to let anyone in their home that is not serious about buying. Therefore, pre-approval is now required to visit homes for sale in person. When trying to schedule an appointment to see a house the seller’s agent will ask you for your proof of funds and pre-approval. Failure to provide these documents will result in not seeing the home.
More Articles About Real Estate During Coronavirus:
- How To Buy a Home Virtually
- “Corona Clauses” and Addendum
- Safely Sell Your Home During COVID-19
- VIDEO: Three Months Later – What’s Changed in Real Estate Since COVID-19?
Know Your Budget
There’s nothing worse than finding your dream home…then realizing you can’t afford it. With a pre-approval in hand, you know exactly how much money a lender is willing to lend you. This helps you and your agent set a budget and have a clear picture of what you want and need in a home. A lender will also check on your credit and make sure that looks good before moving forward.
Curious how credit works when buying a home? CLICK HERE.
If you’d like a referral to a local lender who can help you with the pre-approval process, we’d be happy to provide one. If you have any questions about the home buying process, please feel free to send us a question on the contact form below.
And if you’re ready to start searching for homes, CLICK HERE to start looking at homes.