One of the most common home buying myths that exists is that when buying a home, you should find a home before getting a pre-approval. Some of the most common things buyers say who do not want to get a pre-approval include;
- “I’m going to wait until I find the right home to speak with a mortgage company.”
- “I don’t need to speak with a mortgage company first, I’ll be able to get a mortgage, no problem.”
Below are the top reasons why real estate agents will request a pre-approval letter before showing houses to a buyer. See why this is common practice of top real estate agents before you get upset when a real estate agent requests a pre-approval letter before showing you homes.
- Provides Proof Of Ability To Obtain Financing. The reality is that not everyone can get a pre-approval. Real estate agents want to make sure that a buyer can get a pre-approval before spending their time driving around town showing houses to a buyer who cannot obtain financing.
- Saves Time & Frustration. Realtors are not only attempting to save themselves time but also the buyer. A pre-approval provides a buyer, and their real estate agent, information as to what price range they should stay within as well as the range of yearly taxes. What can end up happening is they find out they cannot afford the home they fall in love with which leads to lots of wasted time, frustration, and also heartbreak.
- Strengthens Negotiation Ability. A buyer who has a pre-approval has a distinct advantage over those buyers who decide to look at homes without a pre-approval. If a seller receives multiple offers on their home, which is pretty common in a sellers market, they are going to select a purchase offer from the buyer who provides a pre-approval.
- Sellers May Require It. Some homeowners do not want buyers walking through their home who haven’t spoken with a mortgage company as they do not want to waste their time. Some sellers also do not want unqualified buyers walking through their home, which is a common practice at real estate open houses. Don’t be offended if a real estate agent requests a pre-approval before showing you a home as it maybe a direct request from the homeowner.
Buying a home is a big deal. There are certain steps that need to be taken in order to be successful. A real estate agent who requests a pre-approval from a buyer before showing them homes is only attempting to represent the buyers best interests.