There’s a lot of debate over when exactly you should be pre-approved on a West Knoxville home.
Should you do it at the beginning of your home search? Should you do it when you get a bit more serious with your home search? Or, should you wait until you’re ready to make an offer on a home?
There’s a case to be made for any of those scenarios. But ultimately, the strongest argument can be made for getting pre-approved at the start of a transaction. In this post, we’ll explain why you should be pre-approved before you start your West Knoxville home search.
What Is A Pre-Approval & Why Does It Matter?
Before you start your home search, it can be important to talk with a loan officer. This will confirm how much you’re able to buy on a home and will help set a budget for your home search. It will also provide you with some confidence that you can afford that home that you want.
When you talk with a loan officer, you can either get pre-approved or pre-qualified. A mortgage pre-qualification is merely an estimate how much you can afford and how much a lender is willing to lend. When you get pre-qualified, none of the information you provide is verified.
In contrast, a mortgage pre-approval is a little bit more involved than pre-qualification. When you get pre-approved, a lender makes a commitment to provide you with financing. You provide them with all documentation for your income, assets, and debts. They will also pull your credit to pre-qualify you.
So, why does it matter? A pre-approval holds more weight than a pre-qualification since the information provided is verified. When it comes to standing out in a seller’s market, this can show a seller that you’re a competent home buyer.
Without It, You’re Wasting Your Time
Would you start shopping for anything without a budget? Probably not.
A house is one of your largest investments you’ll make. You’d be crazy not to know your budget from the very start. The great thing about being pre-approved is that you’ll know what you can afford. You may be able to afford more than expected or you may be able to afford less than you expect. Either way, you’ll start your home search out knowing exactly what you can afford.
Price is the largest search criteria for any buyer. Your home search will be a complete waste of time if you don’t know what you can afford. Take the time at the beginning of your home search to find out how much you can afford and determine what you want to spend. This will save you so much time in your home search since you’ll know this information from the start.
Most Importantly: It Proves You’re A Solid Buyer
In a seller’s market, buyers will often to do anything to stand out. 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.
Bottom Line: Do It From The Start
A pre-approval may be a little bit of work, but it will save you time in the long run. It’ll help set your home search off right from the start.
Are you interested in buying a West Knoxville home for sale? If so, please do not hesitate to let us know. Rick can be contacted at 865-696-9002 or via email at [email protected]. Kati can be contacted at 865-696-1888 or via email at [email protected]. Also, be sure to check out our West Knoxville Home Search Page to see what homes are for sale in the area.