Why Being Pre-Approved for a Loan Matters in the Alexandria/Pineville Market
Not Being Pre-Approved Won’t Get You Past The Front Door.
Why Being Pre-Approved for a Loan Matters in the Alexandria/Pineville Market .
So much has changed in the past few decades that the old ways of buying or selling a home simply won’t work today. For decades, buying a home was pretty much the same thing: You shopped around, made an offer and then went to the bank to get a loan. If you were denied or there were problems, you walked away.
Today, a buyer needs to speak to the bank and get approved prior to shopping and definitely before making an offer on a home. Not being pre-approved today won’t get you past the front door. Here’s why:
Markets move faster today
With online listings and so many real estate resources available to buyers and sellers, it’s easy to quickly get a property in front of the masses. Buyers aren’t waiting on a call or fax from their real estate agent like they did in the 1980s. Instead, motivated buyers get push notifications from www.PinevilleHouseHunting.com or texts from their agents and see homes as soon as possible. It’s more efficient.
Transactions happen at the same speed. If you’re not approved for a mortgage when you make an offer, the seller risks waiting weeks to see if your loan will go through. That’s not good for them. Show that you’re pre-approved, and you’ve eliminated one huge hurdle for the seller.
Know what you can afford
People today are focused on their monthly payments more than the total purchase price. Why? Because, unlike the typical buyer a generation ago, many of today’s buyers don’t plan on staying in their homes for 30 years. Instead, they can commit to 7 to 10 years and are open to alternate mortgage options that could save them money on their monthly payments.
It’s helpful to know exactly what a $225,000 mortgage will cost vs. a $300,000 mortgage on a monthly basis. Also, in some parts of the country, there are options for FHA loans with as little as 3 percent down. Knowing all your options before you start shopping allows you to shop and buy smarter. There’s no sense looking at homes in the $400,000 range if you can afford more, and vice versa.
Competing with pre-approved buyers
Few buyers today get into the real estate market without forging a relationship with a local mortgage professional. It’s simply smarter to have your ducks in a row. In a competitive market, you may face multiple offers on one property. If you don’t have a pre-approval letter to go with your offer, you have zero chance of getting your offer accepted. Not being pre-approved means you aren’t a serious buyer in the eyes of the seller.
Getting pre-approved means organizing all your documents, documenting your income, debt and credit, and understanding all the loan options available to you. There should never be a cost to be pre-approved for a loan. And you aren’t committed to a mortgage when going through the pre-approval. Got a signed contract from a seller? Then you’re ready to lock in a rate and choose the mortgage that’s best for you.
If you’re THINKING of buying OR selling Real Estate choose a Full Time, Local Expert. Call JoAnn Deville Smith with RE/MAX Premier Realty. 318.451.2385
If you’re considering a MOVE to the Central Louisiana Area, You will want a Local Real Estate Professional to help guide you. Call JoAnn Deville Smith with RE/MAX Premier Realty. 318.451.2385
JoAnn Deville Smith 318.451.2385
Realtor RE/MAX Premier Realty
Each Office is Independently Owned and Operated
Licensed in the Stat of LA.