One of the most important steps in the homebuying process that is frequently overlooked by buyers is obtaining a preapproval from a bank. It is in the best interest of every buyer to do their due-diligence and go through this process at the beginning of their home search. A buyer has nothing to lose by doing so. Read on as we discuss some of the main benefits of obtaining a pre-approval letter from a bank.
Expedites your home search
Serious buyers need to recognize that a home listing can fly off the market in the matter of hours. This happens all the time. One of the greatest benefits of having a pre-approval letter is that it speeds up the home search process in a few ways. For one, you won’t need to waste precious time looking at homes that you know for a fact you cannot afford. Next, you don’t need to waste time getting approved for a loan from the bank when you find a home that you wish to make an offer on. Last but not least, you will ultimately be able to close on a home faster. It is better to get this step out of the way when beginning your home search.
You become more favorable to sellers
In a sellers market especially, a preapproval letter will make you more competitive because you gain an advantage over other buyers who have yet to take this step. It demonstrates to the sellers that you are in fact a serious buyer who can actually afford the home. In some cases, sellers will not entertain offers that are not paired with a pre-approval letter.