With Denver being such a competitive market, pursuing pre-approval before you start the home search process will only benefit you in the long run. If you need help with the pre-approval process, we have steps in place to guide you in the right direction!
It can can be frustrating when all you want to do is check out a house that recently came on the market and the realtor that you contacted seems reluctant to show unless you have been pre-approved. Why is that needed? Here’s why the pre-approval process is so vital in your home search……..
1.It shows that you are eligible to purchase a house
According to an article at realtor.com: Real estate agents prefer showing homes to buyers with a pre-approval letter, because it shows the buyer is financially capable of purchasing. Agents need to know if you can really buy a home. That said, a pre-approval letter isn’t mandatory to tour a home. It just might not be in their best interest, so don’t be surprised if you get some pushback if you say you don’t have pre-approval.
2. A pre approval letter also benefits you
As the article continues: If you don’t take the time to get pre-approval, it’s not just the real estate agent’s time you’re wasting—it’s possibly yours as well.“There is no sense in wasting your own time and that of an agent to see homes until you are ready to purchase,” says Rosanne Nitti, a Realtor with RMN Investments & Realty Services in Laguna Beach, CA.
Getting a pre-approval letter should be one of your first steps in the home-buying process, she says. “Then when you see something you like, you can act on it.” As a buyer, that ability to act quickly gives you an edge over other people who don’t have certification from a mortgage lender.
3. Helps to narrow your search and define a price range
If you don’t know what you can afford, you may be looking out of your price range and again, wasting your time and energy. It can be emotionally draining when you think you have found the house of your dreams, only to find out that you are not qualified to purchase it!
4.Will give you more leverage when negotiating with the seller
Another good reason to get pre-approved before your house search. Sellers will take you more seriously as a potential buyer and if you submit an offer, will give it priority over others that have not been reviewed by a lender.