Things To Do Before Talking To A Real Estate Agent

You're likely to want to do everything possible to ensure you find the right home for you, especially in a competitive market. Unfortunately, while there are many tips, prospective buyers often overlook getting pre-approved before speaking to a realty agent.

Pre-approval will not only increase your chances of winning the house, but it will also make the whole process more straightforward. Agents almost always require pre-approval before they show you houses. If you're serious about buying a home, it is often the first thing an agent will ask for. You're already one step ahead if you have done it before calling the agent.

Sources online indicate that 92 percent of homebuyers who finance their homes with a mortgage are pre-approved. Pre-approval for buyers who work with an agent is more common than those who do not (83% vs. 67%). This indicates that pre-approval must be obtained to secure an agent, or the agent can highly recommend it.

Find Out What You Can Afford

Pre-approval early is important for many reasons. But, it's especially important to understand your financial capabilities before you start your home search.

You want to make sure everything is in order before you go. Preapproval is the best way to ensure that you have all your financial ducks in order.

This can help you find out if your credit is in trouble. A lender will pull your credit reports, verify your income, and check your finances.

You must ensure that there are no credit problems. There might be things on your credit report that you are not aware of. These issues can impact your credit score and, therefore, your ability for a mortgage. If you don't get pre-approved, and then you start the process to offer a house and find out that you can't, it's a waste of your time and your brokers' time.

Times Have Changed

Although pre-approval was not always required before you make an offer, the times have changed.

Staying Competitive

Pre-approval can be a key to winning or losing the house, depending on where you are looking to purchase. Homes can get multiple offers in some "hot" markets. Without a pre-approval letter, it will be harder to be competitive.

You can ruin your chances of ever competing if you offer something without having been pre-approved.

To get pre-approved, you need to have all your paperwork organized, including documentation of your income, debt and credit history, and a list of your assets. It takes some planning, but it will save you time and help you move faster once you have found your dream home. These layers of verification will need to be completed at some point during the process.