If you’re planning on house hunting, one of the first things you need to do is get preapproved for a home loan. Many people skip this step, but it can be very beneficial. Getting preapproved is a fairly simple process that involves some paperwork and basic discussions with home lenders, and it could end up saving you a lot of time and money in the long run. People who get a preapproval before they start shopping for a house for sale in Irvine, CA, obtain these five advantages.
1. Getting a Dedicated Real Estate Agent
A lot of real estate agents refuse to even work with clients unless the prospective buyers have a preapproval. Agents prefer clients who are preapproved because they want to know house hunters are prepared to purchase a home. Without a preapproval, you might not have access to all the helpful knowledge and insider information real estate agents have.
2. Closing on a Home More Quickly
Once you find your dream home, you probably won’t want to waste time before closing on it. A preapproval shortens the amount of time it takes to obtain a mortgage. Instead of having to spend hours going back and forth with lenders, you’ll only have to finalize a few technicalities after your offer is accepted. When you start the paperwork as soon as possible, you’re less likely to deal with last-minute complications that might keep you from closing.
3. Knowing How Much You Can Spend
Even if you think you have a good idea of how much you can comfortably afford, the bank’s opinion may differ from yours. Without a preapproval, you could end up falling in love with a home only to find out that no lender will offer you the money you need to buy it. House hunting with a preapproval means you have a realistic idea of your budget.
4. Finding the Best Loan Offer
When you look for preapprovals before house hunting, you can focus on shopping for the most favorable financing instead of spending all your time thinking about real estate listings. Your FICO score will be dinged every time your credit is checked, so try to do all your shopping around within a two-week time period. This way, all the inquiries count as a single credit check, so you get better interest rate offers.
5. Making Yourself More Appealing to Sellers
If you’re in a competitive market where sellers get to choose from among several offers, a preapproval can greatly improve your prospects. Accepting an offer that isn’t approved yet is risky for the seller because financing could fall through and tank the whole process. Many sellers automatically reject any offer without a preapproval attached because they don’t want to deal with the hassle.
Getting approval for a home loan before you start shopping for houses is one of the shrewdest moves you can make. It’s also a smart idea to work with real estate agents in Irvine who have years of experience in the industry, because they have in-depth knowledge about the ins and out of home financing. Trust the experts at Irvine Residential Living to help you find your dream home and guide you through the home-buying process. Call one of our friendly agents today at 714-454-6304 to get one step closer to moving into your new house.