Why Should I Get Prequalified?
Why be inconvenienced finding a lender or going to the bank to be prequalified to buy a home? Especially when a budget and price range is in mind. Finding the dream home should be the most important, right? As Real Estate Professionals, we understand why taking this step is annoying, however there are a few reasons it is done.
A Courtesy to Sellers
First, as a Listing Agent representing the seller, we’re trying to be courteous to our client. They need the confidence that the buyer has taken the extra step to know they are able to purchase the type of home they have scheduled to view. Also, sellers are living in a “mad house.” Often they live in the home while trying to sell. When they have a showing scheduled a serious seller will clean, make beds, do dishes, take out the trash, mop the floors, and the list goes on. Should they have children and/or animals, a seller worth their salt will leave the home and take a ride around in the car with the children and critters in tow so that the buyers are able to focus on the beauty of the home.
Resolves Many Initial Roadbumps
Secondly, sending prospective buyers to a lender before showing them a home resolves all the beginning questions a buyer has starting with the lender. Some issues that need resolution before choosing a price range include: How much cash is needed for a down payment to buy this home? What would a payment be on this price range or perhaps a higher or lower range? What is the going interest rate? These are typically the front running questions for new buyers meant to be answered by the lender.
Know Exactly What Homes You Can Buy
Lastly, it is imperative to get prequalified before viewing any home because the first appointment with a lender will give a map for the home-buying trip. Shopping for homes without first speaking to a lender is like taking a trip with no navigation. Buyers can look all day long at homes, and once they find one it may be the wrong price range for their affordability. On the flip side, buyers may be comfortable with a certain payment but assume the wrong interest rate and realize they can buy something much nicer or larger. THEN … it’s back to the drawing board with time wasted and a possible dream home sold in the meantime.
The desire to look at homes may feel tempered by having to be prequalified by a lender. However, it provides confidence to both the buyer and seller, knowing that the home being seen fits right into the budget. Knowing the current interest rate, and that there is no hitch in applying for a loan gives confidence and security to both the buyer and seller. This is the perfect step to finding the dream home!