Get Preapproved and Get the House
In this day and age of changing interest rates and uncertain futures, you'll need to
leverage all the power your money can buy. Preapproval puts a commitment behind your
home-shopping interest. That's why you should get preapproved before you even visit your
first house. Why? Because in most cases you won't be able to put in a serious bid without
it. Sellers will frequently choose a preapproved buyer's bid over a buyer who is not
preapproved. Real estate agents favor clients who demonstrate they are serious. Money talks,
so get preapproved!
Tips to get you started
- Find a bank or a mortgage broker who will preapprove you at no cost - don't pay an
application fee.
- If you don't have a local bank, use the Internet--sites like
GetSmart and
LendingTree
will help you get four loan offers at no cost to you.
- Get a copy of your preapproval letter. (Or print out your Internet confirmation).
- Take your preapproval letter when you go house hunting.
- You can consider prequalification (no documents required), but this carries less
weight when negotiating.
- Getting preapproval from one lender or bank doesn't mean you have to close the loan
with that lender or bank.
- Most mortgage brokers will come to your office or home to review the necessary
documents for preapproval.
It's not always good to get preapproved for the "maximum amount". A seller will see this
amount, and if it far exceeds the purchase price, they may be less likely to negotiate a
price consideration. Get preapproved
for the amount you want to spend.