Buying A Home Is A BIG Deal

Dated: August 2 2017

Views: 811

It is a BIG deal that not many people fully understand.  There are laws, processes, intricacies, and ideals that need to/should be followed. It’s for this reason, that I think it is especially important to answer all the questions that I can regarding the home searching/buying/selling process in an effort to inform and empower you. So, I plan on blogging about many of these frequently asked questions and hopefully they will prove beneficial to many inquiring and uninformed minds.

Q: We have decided that we are ready to buy a home.  What is our first step? 

A: This is a GREAT question and one that I am asked often.  But the answer is simple: The very first thing you should do even if you’re just entertaining the idea of buying, is to get pre-approved by a lender.  There are many reasons that a pre-approval letter is important, but let me highlight just a few.

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1.  Pre-approval letters are proof that you are actually able to buy a home.  Unless you are planning on paying cash for your home, you will need some sort of financing.  And if you cannot show that you are able to obtain said financing, you can kiss that home buying dream least for now.  There are few things more frustrating, for both a realtor AND as a buyer, than beginning the home searching process, only to find out in the end that you’re unable to secure financing necessary to make the purchase.  By getting pre-approved, both you and I can search for your home with a peace of mind and confidence knowing that you CAN afford it.

2.  Pre-approval letters help define your search.  Those million dollar listings may be fun to look at, what is the point of looking at something that you do not have the means to buy? Being pre-approved lets us know what you can spend, which in the end will save you valuable time and energy because we won’t be looking at houses out of your price range.  (Also, if your realtor is showing you homes that you cannot afford, you need more than a new home -- you need a new realtor.  But that is a blog post all of it’s own.)  Knowing what you can spend and being realistic from the beginning is in the best interests of all parties involved.  Period.

3.  Pre-approval letters can potentially give you leverage with the seller. Being pre-approved looks good to sellers and can position you above other potential offers. What is more is that pre-approval letters can be great negotiation tools between yourself and sellers.  It is a symbol of your seriousness and shows sellers that their home is within your budget. 

4.  Pre-approval letters can result in smoother transactions. After you find your dream home is NOT the time to apply for a pre-approval.  If your desire is for seamless purchase, then do yourself a favor and apply for financing before starting the search, as to not slow the process once you are ready to make an offer.

5.  Pre-approval letters trump pre-qualification.  Pre-approval and pre-qualification are NOT the same thing. Pre-qualification is simply an estimate and an opinion from the bank on what you could afford.  Alternatively, pre-approval is factual and holds much more weight than its counterpart.  Granted, getting pre-approved is more work, but in the end it will be well worth it when you present yourself as a strong, qualified buyer.

Now that you know the importance of pre-approval, I’d love to help get the ball rolling.  Contact me at 515-229-2012 and I will set you up with a fantastic lender who wants to see you in your dream home just as badly and you and I both do.

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Heather Wright

In the competitive Des Moines market, Heather Wright combines client-focused service, innovative marketing techniques, and a decade of experience to make sure that your buying or selling experience is....

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