Why Preapproval is a Must When Buying a Home
If you have decided you are ready to buy a house at Lake of the Ozarks and have questions about preapproval, we wrote this blog for you! Some people think preapproval is not necessary, but in a fast-moving market preapproval really is a must. It is so heartbreaking to see a client fall in love with a house and watch it sell to someone else while they are waiting on their approval to go through. On the other hand, preapproval gives you an advantage as a buyer, and we are going to talk about how in today’s blog. If you’re interested in learning why and how to get preapproval before you start looking for your dream home at Lake of the Ozarks, just keep reading.
Knowing your Buying Power
Having your preapproval letter before you start looking at homes for sale at the Lake of the Ozarks allows you to know just what you can afford financially. While you may not know the exact price of the house you will eventually make an offer on, your preapproval amount can be adjusted once that is known. Getting preapproval before you start looking also allows you to find out if you have any issues with your credit. If you have a low credit score or your debt-to-income ratio is too high, you may want to address those things before you start looking to buy a home.
Being Ready and Negotiating with Confidence
The preapproval process does take time, and when you have a fast-paced market, it may be impossible to compete with other buyers who already have their preapproval in place. If you place an offer without preapproval, and another buyer place is an offer with preapproval, the seller is very likely to go with the person who is preapproved. When you have preapproval, you have stronger negotiating power because the seller knows you have your financing in order.
What you will need
In order to get pre-approval, you will need to gather some financial documents for your bank. You’ll need your bank statements, your W-2s, and your credit score. Preapproval is a fairly simple process, and you are not obligated to get your mortgage from the same place where you obtain your preapproval unless they stipulate that, and that is not common. Before you actually decide on the final mortgage, it is smart to compare different lending institutions to decide where you will get the best deal when it comes to your loan.
Happy House Shopping from Your Favorite Real Estate Team!
Once you have pre-approval, you are ready to go! Your Favorite Real Estate Team is here and ready to assist you. If you have any questions at all, we would love to sit down with you and talk to you about your search for a home at Lake of the Ozarks. We are experts in the real estate market at Lake of the Ozarks and we love nothing more than to help people find their forever homes. Give us a call when you’re ready to start looking. If you would like to stay informed with all our tips and information about life at the lake, we have the links to our social media channels below to make it easy.
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