The homebuyer's pre-approval imperative is just as the title suggests. Pre-approval is one of the most important steps in the homebuying process. It is essential that prospective homebuyers understand just how vital pre-approval is. Pre-approval is one of the first steps a prospective homebuyer should be taking in their home seeking pursuits. This is where a chosen lender will assess the prospective homebuyer's economic health. The lender will then inform the homebuyer on which types of loans they may be eligible for. That data is also accompanied by information on exactly how much money they may be approved to borrow and what their mortgage rates would be. The pre-approval process assists homebuyers in better understanding all of their options. It is a critical first step in the overall process.
There is another most noteworthy benefit to obtaining pre-approval. When a prospective homebuyer gets pre-approval, it signals to the seller that he or she is a "serious buyer". This, in turn, gives the seller more confidence in a homebuyer's offer, insinuating that the buyer is more committed toward buying their home. As Christy Bieber of The Motley Fool explains:
"pre-approval maximizes the chances you'll be able to actually close the deal- and sellers want to see that. . ."
This goes to show just how much of an integral role the pre-approval step plays in the overall homebuying process. The fact that it increases the chances of an offer being accepted more so than it would without the pre-approval reason enough for completing the pre-approval process in its entirety. It really all begins with the lender's pre-approval letter written to the homebuyer. That letter lays out the numbers necessary for the homebuyer's own assessments of what they will be able to afford moving forward. The homebuyer's pre-approval imperative it is indeed.
