In a hot market, the sellers are going to have the opportunity to be picky. To even pick and choose who comes into their home, they're often going to tell your agent, or they're not even going to allow you into the house unless you're pre-approved.
It would help if you considered getting a pre-approval before you start to look for homes for the following reasons:
You will be in a better position as a buyer.
It will make you understand how much money you can borrow. The criteria that a lender will consider to approve you for a loan include:
Income
Debt
Credit Score
Also, the bank will determine how much money they'll loan you based on the collateral, which they're going to get an appraisal.
Allows you to have more options in the negotiation.
From the bank's perspective, the home you're going to buy will be used as collateral. But, of course, from your perspective, that's your home unless it's an investment property.
Getting qualified before you are pre-approved before you go out to look at homes will, as I mentioned, allow for you to have more options in the negotiation.
It allows you to manage a transaction more effectively.
If you have to come to the closing table with money to accommodate for a low appraisal, well, there could be a chance that you could perhaps get a different type of financing for that home. Again, that's something that your lender or your agent, myself, can be able to advise you on.
If you're moving into the Northern Virginia area, my name is Dan Rochon. I've been selling homes here since 2007. There's not a nook or cranny that I don't know. I'd be happy to answer your questions, advice, and talk to you - be a resource. Thanks!
If you're interested to learn more about Real Estate Investing or tips and strategies about Real Estate, you can reach me at 703-346-2776 or send me an email at Dan@greetingsvirginia.com. We will be more than happy to help you.
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Buying a Home is Easier than You Thought!
Here's a list of what you need to think about before you buy, and it will walk you through what you can expect from the buying process itself, plus tips to make life easier after you buy your dream home.
