The benefits of getting preapproved

You know before you go. Before you ever start shopping for a home you should first have your preapproval letter in your hand. Preapprovals speed up the entire home buying process. You can shop with confidence, knowing that there are no ‘‘kinks’’ in your application, while your agent can look for homes on your behalf knowing that you’ve already arranged for financing. Even the seller of a home benefits, knowing that they’re selling to someone who has already applied for, and been approved for, a mortgage. Still, some consumers don’t get this step done until after they’ve found a home. That’s a mistake for the obvious reasons but also a mistake for one not so
obvious.

Let’s say there’s a home on the market for $200,000 and there are two exact offers that arrived simultaneously. One buyer hasn’t seen a lender while the other one has. One borrower hasn’t reviewed their credit report while the other one has a preapproval letter in hand. Who do you think will get the house? Still another buyer makes an offer below the asking price but also provides a preapproval letter stating that the loan is ready to close. Do you think a preapproval letter can sweeten an offer? Of course it can. The seller knows there won’t be any hitches and knows that he or she can move into a new home quickly.