One of the first questions (besides what you’re looking for) that Knoxville realtors will ask you is whether or not you have been pre-approved. You may wonder why this is one of the first questions a realtor would ask you. But, there is very good reason for this.
Getting pre-approved before you start your home search allows you to enter the market fully prepared. In this post, we’ll explain why you should be pre-approved before you start your Knoxville home search.
Do you know how much you can afford? Are you comfortable with your potential mortgage payment? Do you have enough money to use as a down payment? Unfortunately, without talking with a loan officer you can’t really know any of this information.
This is exactly why realtors ask if you’re pre-approved and why they encourage you to get pre-approved before starting your home search. Speaking with a loan officer will give you all of the information you need to start your home search off with confidence. This is particularly important because price is the single most important criteria in your home search.
What if you found out you could spend more than you thought?
This could open up a totally new price range to your home search. If you spend months looking in a lower price range, you could end up wasting your time by not opening up your full home search potential. This is exactly why it’s important to get pre-approved before starting your home search.
It’s a seller’s market. If you’re not prepared and willing to make a move, there will be some other buyer out there who is. The competition is fierce and if you’re not willing to play hard, you’ll get cast aside.
Do you know how much you want to spend? Do you know if you want to pay your own closings costs? If not, do you know how much in closing costs you need to get covered?
Without getting pre-approved, you’re not going to know this information. If you do find the house you want to write an offer on, you’ll need to present a pre-approval letter. If you’re looking at the house on a Saturday or Sunday, you’ll waste precious time waiting until Monday to talk with a loan officer and get pre-approved. In that time, another buyer could have easily come in and made an offer on the same home.
A pre-approval gives you a leg up on the competition. When presented with an offer, a seller wants to see that the buyer is a competent home buyer. A pre-approval is something that can show them that. It shows them that you’ve been vetted by a loan officer and that you’re a good buyer.
A pre-approval allows you to be prepared from the very start. You won’t have to waste precious time to get pre-approved once you’ve finally found the right house.
Finally, when you get pre-approved before you start your home search, a lot of the work will be over with. When you get pre-approved, you’ll need to submit paystubs, W-2s, bank statements, among other things. This can take a bit of work on your part. This is why it can help to do this before you start your home search.
It can sometimes take a day or two to get all of the information over to your loan officer. That can be a critical time when you’re looking in a seller’s market. In those two days, a home could easily become under contract, while you were scrambling to get all the paperwork over to a lender.
This is why it can help to get pre-approved before starting your home search.
Are you looking to buy a Knoxville home this year? We’d be more than happy to assist you in any way possible. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at 865-696-1888 or via email at [email protected].
Are you ready to start your home search? Be sure to check out our Knoxville Home Search Page to see what homes are available in the area.
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