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Today we’re going to discuss why it’s so important to start the home search process with a pre-approval letter in hand.
- You want to know how much home you can afford. When my wife and I bought our first home, we made this mistake. We did not have a pre-approval letter and looked at a house above what we can afford. Once you see a house in a higher price point, it is difficult to backtrack and look at the less expensive homes you can actually afford.
- You will have the advantage in a multiple offer situation. You don’t want to compete with other buyers without a pre-approval letter. It will make it impossible to compete with multiple offers. Because inventory levels are so low, when a house comes on the market that you want, you have to be ready. You need that pre-approval letter in hand.
- Do not make significant purchases before or after the pre-approval process. That purchase could void the pre-approval letter by throwing off debt-to-income ratios. The purchase will also put you into a lower price bracket, or make you unable to buy a home at all.
Those are a few of the reasons why it’s important to start the process by talking to a lender. If you have any questions or know anyone looking to buy or sell a home, give us a call or send us an email. We would be happy to help you!
