I'm really not sure how long this has been going on. Maybe, I have just become more cognizant of it lately. Maybe I'm the only one who notices. Maybe I'm overreacting. Maybe...
In the last few weeks, I have been appalled by potential buyers' unwillingness to get pre-approved before they look at homes. Most of the buyers I have spoken with are first time buyers and I expect a little resistance since they are new to the process. I have also spoken to home owners looking to possibly move up and they too look at me like I am asking them to donate a kidney!
If you are interested in buying a home, if you are thinking of buying a home, if you may eventually buy a home...GET PRE-APPROVED!
Yes, you will need to speak to a bank or mortgage broker. Yes, you will have to disclose some personal financial information. Yes, you will have to have your credit checked and yes, sometimes, you will have to face some harsh realities. At least you will still have your kidney.
BETTER NOW THAT LATER!
Let's face it, no one said buying a home is easy. There is work involved, even for you. It is better for everyone involved to find out where you stand upfront.
Do you want to spend your free time and weekends looking at homes for months only to fall in love with a home and not be able to get a loan?
Do you want to have your realtor spend hours looking through and previewing listings for you only to find out you can not get a loan?
Before my epiphany, I have had clients in the past look at 20 homes only to find out they could get a loan but for much less than the homes we spent hours touring.
Put yourself in the seller's shoes. You have your home listed, you're moving out of the area for a new job, a buyer comes through, puts in an offer and you accept. You're overwhelmed with joy and you start planning your move only to find out 2 days later they can't get a loan.
Sounds crazy but it happens!
I know it's work, it takes time getting things together but why would you knot want to put yourself in the best negotiating position! Pre-approved buyers are taken much more seriously and have a better chance of getting the home they love!
If you are looking for a home and have not been pre-approved, I would love to hear why. What are your concerns? Fears? Thoughts?
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1 comment:
Great post Steve! I do ask a lot of questions and get a lot of detail as a loan officer but you can guarantee they are truly pre-approved and it usually only takes me 30 minutes or less and I can do it over the phone. Most bank owned properties and savvy sellers today won't accept an offer that doesn't have a pre-approval letter with it. It is a waste of time for you and the potential buyer to show them 30 houses and come to find out 29 of them were out of their price range or worse yet they don't qualify for any home at this time. I would stick to your guns if I were you and tell them you won't show them houses until they do! Good luck. I like reading your blog keep it up!
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