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Plan Ahead with Financing!

The Importance of Planning Ahead 

You’ve probably heard the saying, “If you fail to plan, then you plan to fail.” These days, this is especially true when it comes to “planning” for the home loan process. It is so important to get pre-approved, which gives you written documentation that you have the full support of a lender. Sellers usually take an offer from a pre-approved buyer more seriously because they know that financing is in place and the deal is secure. Note that pre-approval is NOT the same as getting pre-qualified, which does not involve completion of a loan application that is reviewed by an underwriter.

Here are just some of the reasons you should get pre-approved…as early in the loan process as possible!

  • You’ll have time to correct errors on your credit report that could prevent you from receiving the lowest possible interest rate…or a loan at all.
  • You won’t look in the wrong price range for a home and be disappointed by what you can really afford, or surprised at what you could have afforded.
  • You’ll know the amount of money you’ll need long before closing.
  • Online calculators are notoriously inaccurate and set wrong expectations.
  • In today’s market, many sellers won’t allow showings to buyers who aren’t pre-approved. Think about it: Would you uproot your family for a buyer who isn’t a real prospect to buy your home?

The loan process is the last place you want any surprises to come up, so be sure to plan ahead and get pre-approved. It’s one of the best ways to make sure your loan process goes smoothly.