As soon as I meet a new buyer, one of the first questions I ask them is if they’ve spoken to a Lender. My question is usually met with the same response, “Oh no, we are just looking at houses—aren’t ready to talk to a Lender yet.” I completely understand this reasoning because, let’s be honest, looking at homes is a lot more fun than having a serious conversation about your finances.
However, the truth is that you really aren’t ready to look at homes until after you’ve spoken to a Lender. To get a better understanding of why this is the case, I have asked Kasey Martin, a Lender with FitzGerald Financial Group, her expert opinion on why calling a Lender is the first call you should make.
Serious homebuyers should consider starting the home-buying process in the office of a Loan Officer rather than their Real Estate Agent. Potential homebuyers benefit from obtaining a letter of pre-approval before finding a home and here’s why:
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1. You want to weed out issues early on. During the pre-approval process, Lenders can detect potential problems that might make it difficult for you to obtain a loan. The sooner you take care of these obstacles, the better!
2. A pre-approval letter helps define your search. After the pre-approval process, you’ll know exactly what you can afford. This makes your home shopping process more efficient, and you won’t waste your time or your Real Estate Agent’s with listings that are out of your price range. With today’s lower interest rates, you may also be pleasantly surprised that you can afford more house than you thought.
3. You’ll have more leverage in negotiations with the seller. A pre-approval letter is required to present your contract offer to a seller. The better your letter, the more competitive your offer. The best Pre-Approval Letter, from a respected Local Lender, means the Seller will have fewer reasons to worry that you will be turned down for the loan during the underwriting process. This can be particularly beneficial when a seller receives multiple offers.
Getting pre-approved is quick and easy, will save you lots of time, and help you avoid future stress. After knocking out the pre-approval process ahead of time, you can enjoy shopping for your new home with confidence!
If you have any questions regarding the pre-approval process, please don’t hesitate to reach out to Kasey.
Kasey Martin—Mortgage Loan Officer
NMLS ID #: 192739
Direct: 301-452-5217
Office: 301-251-0938
