A lot of our customers come to us when they’re ready to look at houses. They want to know why they have to get a prequalification letter before we’ll show them houses! Well, I promise it’s because we are looking out for your best interest.
When you start looking for houses you need that prequalification letter!
First, your lender is going to tell you what price range you can afford to buy a house. Which is HUGE! We don’t want you looking at houses way out of your budget and we don’t want you looking at houses way under your budget either (unless you really want to 😀). We want to be looking in the perfect price range for you!
Second, your lender is going to tell us what type of your loan you’re going to be getting. Are you a first time home buyer so you’re going to go FHA? Or are you getting a conventional loan? Maybe you’re a veteran so you’re getting a VA loan. Or maybe you’re a cash buyer so you won’t need a lender at all!
Third, it protects the people who are selling their homes. When you go and look at a home the Seller has gotten excited about a potential buyer for their house. If you were to put in an offer and it was accepted, but you find out later that you can’t afford the home— everyone is crushed.
Fourth, many times Realtors® ask that you submit a prequalification letter with your offer! Mainly, to avoid the scenario discussed above where you can’t afford to purchase the home. Which you can’t do if you don’t have a prequalification letter! Basically, the Realtors® want to know when you put an offer in that you’ve done the necessary steps to purchase a home. They can see who your lender is and see if you’ve been prequalified for the amount to purchase the home.
So, going to your lender and getting that loan prequalification letter first, everyone knows what we’re working with and which direction we’re going in is the best possibility! Remember, you can choose which lender you want to go with! See which lenders have the best rates and products for what you’re looking for! If you don’t know any lenders, we have a list of amazing lenders from which to choose from!
All of these things are important for us to know when we’re showing you homes! It helps us do our jobs as Realtors® to the best of our abilities for you!
If you have any questions please reach out to me!
Jennifer Hennis, Realtor®
Pamela Myers Realty