If you’re in the market for a new house, you might be wondering whether or not to get pre-approval before beginning your search. Not to be confused with “pre-qualification,” a pre-approval helps you and your lender determine exactly how much you can afford.
In spite of the many benefits of doing so, only a mere 10% of homebuyers actually sought pre-approval in recent years. Forgoing this highly recommended option typically extends from things like fear of rejection, or perhaps a simple disinterest in the process, but skipping out on pre-approval can be detrimental in many ways.
Another thing to keep in mind is your credit score. While you may think you have a solid rating, your lender may discover otherwise. Directly approaching a lender prior to house-hunting in order to learn more about your financial standing can aid in managing expectations between you, your lender, and your real estate agent.
Not only will you have a better understanding of what is realistic, but you will also provide your agent with confidence in your ability to purchase, opening a larger range of housing options to choose from.
Take a look at the infographic below to learn more about why it is so important to get pre-approval before buying a new home.
