You have decided it is time to buy a home, whether it is your first home or your 10th it is still an exciting and nerve racking time. There are things you can do to reduce your stress levels, and I don't mean booze! Being realistic with the homes you are looking at is a big thing. Are you sure you are really able to buy that $250,000 home rather than the $150.000 one 3 streets away?
It may seem that the first thing you should do is find your real estate agent and rush out and look at every home in your price range. This mistake is a very, very common one, lets be honest it is exciting imagining yourself living in a huge house with a swimming pool, what if the reality is that you can only afford a 2 bedroom 1 bath shed? It may hurt but you need to know exactly what sort of house you can afford, there is no point wasting time looking at houses you will never be able to buy.
Being preapproved before looking at homes solves several potential problems. The first problem is that most homeowners and real estate agents will not even consider an offer from you without a preapproval letter. It makes sense when you think about it because anyone could come off the street and make an offer on a home. If the buyer is really not qualified, the seller has wasted valuable time on the market by taking their home off the market for an unqualified buyer.
When you are selling a home it is quite stressful to have people wandering round your home, so you try and discourage anyone who is the real estate equivalent of a tire kicker. As soon as your agent tells them you have a pre-approval letter they will instantly take more notice and be more willing to change their plans to show you their home.
Having a pre-approval letter does not automatically mean that you will be able to buy a house at that maximum level, nor should you. As a wise man said, it is easier to borrow money than it is to pay it back. The letter will save you headaches when trying to get access to homes and it should speed up the buying process once you find the right home. - 30214
It may seem that the first thing you should do is find your real estate agent and rush out and look at every home in your price range. This mistake is a very, very common one, lets be honest it is exciting imagining yourself living in a huge house with a swimming pool, what if the reality is that you can only afford a 2 bedroom 1 bath shed? It may hurt but you need to know exactly what sort of house you can afford, there is no point wasting time looking at houses you will never be able to buy.
Being preapproved before looking at homes solves several potential problems. The first problem is that most homeowners and real estate agents will not even consider an offer from you without a preapproval letter. It makes sense when you think about it because anyone could come off the street and make an offer on a home. If the buyer is really not qualified, the seller has wasted valuable time on the market by taking their home off the market for an unqualified buyer.
When you are selling a home it is quite stressful to have people wandering round your home, so you try and discourage anyone who is the real estate equivalent of a tire kicker. As soon as your agent tells them you have a pre-approval letter they will instantly take more notice and be more willing to change their plans to show you their home.
Having a pre-approval letter does not automatically mean that you will be able to buy a house at that maximum level, nor should you. As a wise man said, it is easier to borrow money than it is to pay it back. The letter will save you headaches when trying to get access to homes and it should speed up the buying process once you find the right home. - 30214
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