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The Top 5 Reasons To Get Pre-Approved Before You Buy

1) Enhanced Negotiating Power

They say “cash is king” and they are correct. When you can prove that you have the money (or that you have your mortgage lined up) and are ready to buy, you put yourself in a better position to get the home at a lower price. A pre-approved mortgage is as close as you can get to being a “cash buyer” without having the actual coin in pocket.

2) Knowledge Is Power

If you have taken the time to get pre-approved, you would also know the different loan options from which you may choose. I have many people who visit with me and think they want a fixed rate loan, because that’s all their parents ever talked about (25 years ago). After considering 4 or 5 different types of loans, sometimes they learn that an adjustable rate better suits their needs. Knowing your options is critical to making the right decisions.

3) Less Stressful Process

There is no doubt that one of the keys to success in life (including business, sports, school, etc.) is preparation. By going through the pre-approval process, you’ll have about 75% of the paperwork completed before buying your new home and will have a much shorter list of things to worry about before closing.

4) Reduce The “Surprise” Factor

Have you ever heard the “Horror Stories” about someone who bought a house, made it to the last couple of days before closing and then found out that somebody forgot to order the appraisal, or the underwriter is out sick for 3 days, or some other unforeseen problem? Roseanne Rosanna-Dana was right…”it’s always something!” Better to plan ahead and don’t put yourself in the position for surprises.

5) Beat Out Other Offers

If you were selling your house and 2 people wanted to present their offers, which one would you be more inclined to accept…A) the one offering full price, or B) the one offering full price plus they have a Conditional Loan Approval letter showing that they are for real?


	The Top 5 Reasons To Get Pre-Approved Before You Buy 1) Enhanced Negotiating Power They say “cash is king” and they are correct. When you can prove that you have the money (or that you have your mortgage lined up) and are ready to buy, you put yourself in a better position to get the home at a lower price. A pre-approved mortgage is as close as you can get to being a “cash buyer” without having the actual coin in pocket. 2) Knowledge Is Power If you have taken the time to get pre-approved, you would also know the different loan options from which you may choose. I have many people who visit with me and think they want a fixed rate loan, because that’s all their parents ever talked about (25 years ago). After considering 4 or 5 different types of loans, sometimes they learn that an adjustable rate better suits their needs. Knowing your options is critical to making the right decisions. 3) Less Stressful Process There is no doubt that one of the keys to success in life (including business, sports, school, etc.) is preparation. By going through the pre-approval process, you’ll have about 75% of the paperwork completed before buying your new home and will have a much shorter list of things to worry about before closing. 4) Reduce The “Surprise” Factor Have you ever heard the “Horror Stories” about someone who bought a house, made it to the last couple of days before closing and then found out that somebody forgot to order the appraisal, or the underwriter is out sick for 3 days, or some other unforeseen problem? Roseanne Rosanna-Dana was right…”it’s always something!” Better to plan ahead and don’t put yourself in the position for surprises. 5) Beat Out Other Offers If you were selling your house and 2 people wanted to present their offers, which one would you be more inclined to accept…A) the one offering full price, or B) the one offering full price plus they have a Conditional Loan Approval letter showing that they are for real?