Dated: 05/20/2014

Views: 464

One of the best bits of advice we can offer the prospective home buyer is to obtain a pre-approval for a home loan. Let's cut to the chase and look at all the distinct advantages this offers you: -
A better relationship with the seller

Although you might think the seller is the person doing the "selling", it's also true to say that you need to sell yourself to the seller. Still with us? Well what that tongue twisting statement really means is that you'll stand a much better chance of being taken seriously if you are pre-approved for a home loan that covers either the asking price or the amount you're prepared to offer.
Better results from your realtor

Early pre-approval is only going to motivate your realtor to work harder for you. Think about it. Your realtor lives off commission from sales and is, naturally, always going to work hardest for those clients who he/she knows for certain have the means to actually purchase a property.
A smoother transaction

Want to move into your new home as quickly as possible? Waiting until you find the home of your dreams and then starting to apply for finance is only going to delay that process.
A more realistic approach to house buying

That million dollar mansion that you viewed may have created a memorable afternoon out, but what's the point of looking at something you simply won't have the means to buy? It's much better from everyone's point of view if you are totally realistic and find out, in advance, what your financial limitations might be.
Enhance negotiating power

Knowing how much you can borrow gives you much better negotiating power, not only because you know your limits, but also because the seller knows that, if he/she accepts your offer, you are pre-approved and things should go forward without a hitch.
Home hunting with more confidence and focus

OK, it's something of an intangible advantage, but you will unquestionably find the house buying process less frustrating if you are going out with the confidence that you can achieve your dreams, rather than just crossing your fingers and hoping for the best. As alluded to earlier, your home search will also be more organized if you focus on what is available in the price ranges that match your pre-approved finance level.
Blog author image

Ralph and Karen Chiodo

THE CHIODO TEAM - Ralph Chiodo Broker / Owner 610-579-9514 Karen Chiodo Realtor / Owner 610-579-9514 Together Ralph and Karen (and their dedicated Team) have success....

Latest Blog Posts

1010 N. Hancock St. "WeWork" Philadelphia, PA 19123 eXp Realty Philadelphia-Now Open!

 eXp Realty-Philadelphia is Located at WeWork in Northern Liberties at 1010 North Hancock St. Philadelphia, PA  19123.eXp Realty is proud to be located at WeWork (the former Schmidt's

Read More

How to Use Comparable Sales to Price Your Home

By: Carl VogelPublished: August 5, 2010Before you put your home up for sale, understand how the right comparable sales help you and your agent find the perfect price.How much can you sell your

Read More

Quick Tips to Remove Hardwood Scratches

Hardwood floors can get scratched up, whether by moving furniture or rambunctious kids. But many scratches can be easy to repair.“Surface scratches are caused by everyday use, grit

Read More

The Everything Guide to Selling Your First Home

The Everything Guide to Selling Your First HomeArticle From HouseLogic.comBy: HouseLogic How to figure out exactly what you want, and how to work with the experts who'll help you get it,

Read More