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Why your real estate agent wants you to get Pre-approved before showing you homes

Posted on 6/15/2016 by Oksana Whitsitt in real estate financing
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Did you ever get denied a home showing by a real estate agent because you weren't pre-approved? There's a reason why and it's not because they are mean or don't value your business. It's actually the opposite, they want to make sure you're getting the best service and stress free home buying experience.

 

So what is the reason your agents ask you to get pre-approved before starting a house search?

1. pre-approval differs from a pre-qualification.

With the former, the lender has actually checked your credit and verified your documentation to approve a specific loan amount (usually for a particular time period such as 30, 60 or 90 days)

2. You'll know what you can afford.

Getting pre-approved before  house hunting allows you to know your budget. Knowing this helps you focus only on those homes on the market that you can realistically afford. It saves you time and unpleasant realization that the house you fell in love is out of your price range.  

3. Increasing negotiating power.

 If the homeowner is eager to sell, they may be more willing to accept a lower offer from someone they’ve been assured is financially capable of purchasing their home.

4. Most agents won't work with you without you being pre-approved.

Face it. Real estate agents work only on commission and don't get paid until they get a successful closing. Your agent  will invest countless hours of showing you homes over the course of your house hunt. If you were in their shoes,  I bet you would want assurance that your hard work would pay off.

Those are only few reasons why you need to choose a lender and get pre-approved before even starting to look for that dream home you always wanted. If you need help finding a reputable lender I can recommend a few trustworthy people. 

 

Based on the article 

6 Reasons Your Agent Wants You Pre-Approved Before Showing You Homes

 

 

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