When I work with buyers, I always recommend that they get their financing pre-approved before seriously looking at homes.
There are several reasons, including:
Understanding Financing Costs
Lenders must provide a borrower with a GFE (Good Faith Estimate) when they approve a buyer’s loan.
The GFE includes full details and disclosures for the buyer’s loan.
It’s critically important that a home buyer know the details of their financing before looking at homes.
Being Prepared To Buy
If you’re going to finance your home purchase, you may as well arrange it upfront vs. putting it off until you find the home you want.
You’ll need to arrange financing sooner or later, and sooner is better than dealing with the challenges of loan approval after you’ve found your dream home.
Few sellers will take their home off the market for a buyer who hasn’t been pre-approved for financing.
Lack of pre-approved financing is often viewed by sellers and listing agents as an indicator of a weak or casual buyer.
And, buyers without pre-approved financing in a multiple offer situation are almost guaranteed to lose out.
Inside Real Estate | Print This Post | No Comments »