Before you even start looking for a home it is a good idea to get pre-approved. Think about it, doesn’t it make sense to know how much you are qualified to borrow before you invest your precious time running around looking at several houses? You can stick to looking within your price range, and if you find the home you have been looking for, you have the confidence to submit an offer you already know you can afford.
Also look at it from the sellers point of view. They are just like you, planning their next home, and getting ready to move, all the while letting people come over at a moments notice to look at their house. If they were to get two similar offers, and one of them was accompanied by a pre-approval letter, which one do you think has the best chance of being accepted?
In the end you simply save time and money by getting pre-approved and knowing your limits. It also increases your bargaining power and gives both you and the seller confidence that if they accept your offer, there won’t be any last minute difficulties because you are having trouble getting the financing necessary. It just makes sense and can make the whole home buying process a little less stressful.
