Your Realtor (and any Lenders you talk to) will recommend getting pre-qualified or pre-approved before you select a home to buy. You’ll be in a much stronger position to negotiate a final purchase price once these steps are completed.
Here are 6 reasons make these your beginning steps:
1. Pre-qualified lets you understand how much house you can afford.
2. You can learn what the best loan program is based on your needs. There are many loan options out there. If you’re a first-time homebuyer, some loans offer special incentives for more savings.
3. You will have an idea of how much money you will need for down payment and closing costs.
4. Having a firm handle on costs and affordability will temper the “I’m in love” emotions you’ll have when you find your perfect home.
5. A home seller will appreciate that you’re serious about buying their listing. That’s an advantage to you when negotiating a final purchase price.
6. Pre-approved means you’ve completed all the paperwork, verification, etc. and you’re ready to buy. Now. All you need is an address of a home to plug into the ‘address’ line. Sellers know you’re deadly serious, and can close on their home in a shorter timeframe. Most home-sellers can be tempted down in price with the certainty of a quick closing.