Get Pre-qualified for a Home Loan Before Searching for a Home
Anchorage Real Estate Blog
There are many good reasons as to why home buyers should get pre-qualified for a home loan before searching for a home.
Getting pre-qualified or pre-approved for a home loan before actually searching for a home can save you, the home buyer, a ton of time and energy. Why? First of all, you don't know how much of a house you can really afford without getting pre-qualified. If you are talking to sellers or looking at homes with a Realtor that are $300,000+ and you can realistically afford a $200,000 home, you would be wasting a lot of energy and time.
Getting Pre-qualified puts you, the Home Buyer, in the Driver's Seat. How? Home Sellers will take you much more seriously if you can prove, in black and white, that you've seen a loan officer and you can actually afford to put an offer in on their home. Without a pre-qualification letter, home sellers don't want to expend their energy on negotiating an offer.
Getting Pre-qualified will better your chances of getting your Dream Home. Really? Yes, think about it this way. It's the weekend and you go out searching for a property with your Realtor. You find the home of your dreams, in a price range that you're comfortable with. You want to put in an offer on the property. You find out that the sellers are expecting another offer so you raise your purchase price above the asking price. Your Realtor submits your offer, but oooops, you forgot to get pre-qualified and you can't meet with any lenders since it's Saturday, after 7pm... The seller accepts the other offer, with a LOWER OFFER PRICE, because they have a pre-qualification letter. The seller says that he/she accepted the other offer because they feel more confident with the other offer since they know those buyers: 1) can afford the home, 2) are more likely to perform since they were more prepared, 3) will get things done that need to get done to close on the home!
*Getting Dressed for the Prom and Having Your Date Not Show Up is Much Like Searching for a Home Without Going Through the Pre-qualification Process. You might find the home of your dreams while searching, but end up losing it to another buyer if you're not prepared.
Vanna Siackhasone, Anchorage Real Estate Specialist, 907-720-4663
