Pre-Approvals Benefit Buyers
Kathy Riggs March 22nd, 2009
Spring is officially here! The weather experts told us it arrived Friday night and we Realtors like to think it brought the spring selling season with it!
And of course there is no spring selling season without buyers. So my next few posts will focus on a real estate transaction from the buyer’s side.
How many times have you seen the ads from lending institutions about getting pre-approvals? Think they are just trying to get your business…well they probably are, but getting pre-approved is the first step a homebuyer should take – even before they look at houses. Maybe you are asking why you should see the bank before you begin looking at houses.
When you ask for a pre-approval the lender will ask questions about your income and your debts. Based on specific formulas, the loan officer can determine the maximum amount the bank can lend you. At this time you should ask questions about down payments, closing costs, interest rates and terms (the number of years required to repay your loan).
Now that you have your financing arranged it’s time to call a Realtor (preferably me!) and start looking at houses. When you know your pre-approval limit, you will not be wasting your time or risk big time disappointment looking at homes outside of your price range. Also, by getting your pre-approval you may learn you can afford more house than you thought!
After seeing the home you can’t live without, with the help of your Realtor you write your offer and the Realtor presents it to the seller or the seller’s listing agent. Sellers will smile more favorably on an offer that is accompanied by an approval letter from a bank.
Also, when you are home searching, chances are someone else will fall in love with the same house as you did. You’ll save valuable time by having obtained your pre-approval before you go house hunting.
on the lighter side
…did you hear about the homeowner that consolidated all his bills into one payment? Now he has just one bill that he doesn’t pay!
SHAMELESS PLUG
Read my earlier posts about the $8,000 tax credit and see all Kinston listings at www.kathyriggs.com
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