Have you started looking at homes online yet? If you have, it’s already time to pre-plan and get pre-approved.
If buying a home is on your radar – even if it’s more of a someday plan than a right now plan – you don’t want to wait until later on in the process to take this step.
No matter what you’ve heard, pre-approval isn’t about commitment. It’s about clarity.
And that clarity is empowering. The first step is sitting down with us so we can talk about closings costs, down payments, taxes, prepaids, escrows, insurance and ALLLLLL the things that could add $12,000 – $24,000 to your out of pocket expenses, on top of the down payment. It’s more complex than 5% of $300,000 is $15,000, as with the other costs, on average you need $28,000-$32,000 to close on a $300,000 home. We can talk about that when we meet so you can understand it all. But back to the pre-approval from a bank. Here are the two big ways pre-approval sets you up for success.
During the pre-approval process, a lender will walk through your finances and tell you what you can borrow based on your income, debts, credit score, and more. Once you have that number, your search becomes a lot more focused.
With a mortgage pre-approval, you know what you can borrow, so it’s easier to figure out your ideal price point, and what you can actually afford. That clarity is crucial, because if you start blindly browsing online and just guess at your price point, you run the risk of falling for a house that’s outside of your price range – or missing out on ones that aren’t. You want this number before your search. Here’s how it benefits you:
This is how a lot of home searches go today. You scroll through listings just to see what’s out there, and then it happens. You fall in love with something you’ve seen online. If you’re already pre-approved? You’re probably in great shape, let’s go see it!
But if you’re not…
Instead of being able to jump on that house and quickly make an offer, you have to scramble to get a lender, gather the financial documents, and then submit the necessary pre-approval paperwork first. And while you’re waiting to hear back from your lender, someone else who’s more prepared could beat you to the house.
And that’s avoidable, with the right prep.
Because while you can’t control when the right home shows up, you can be ready for it. Think of it like showing up to the starting line with your shoes tied and your warm-up done – while everyone else is still looking for parking.
Remember, meeting now, before you want to move is not about rushing your timeline. It’s about removing the delay between finding the right home and being able to move on it.
Speaking of timing, pre-approvals do have an expiration date. So, be sure to ask your lender how long it’s good for. The Mortgage Reports explains:
“Mortgage preapproval letters are typically valid for anywhere from 30 to 90 days. However, a preapproval can be updated and extended if the lender re-checks your information.”
We work with lenders who offer a variety of programs, for just about any buyer. We’d be happy to refer you! Give us a call or text to (717) 371-0557 and we’ll make it happen !
Bottom Line
You don’t have to be ready to buy to be ready to buy. Ask yourself this: if your perfect home popped up tomorrow, would you be ready to make a move?
If the answer is no and you want to buy, it may be time to get pre-approved. You don’t feel behind before your search even officially kicks off. Getting pre-approved doesn’t mean you’re committing to buy right now. It just means you’ve taken a step to understand your numbers. And when a home catches your attention, you’re prepped and good to go.
PS – No. Going online to Website X and getting a quick approval letter from an online lender is NOT the same as getting in a real conversation with a real human locally. You will learn more, get a real approval letter and likely, they’re cheaper. The lenders that aren’t spending money on big football game commercials almost always have better rates, fees and service than the online folks. We can connect you to a lender here, locally, who you can trust to be there at closing.
