If you’re just getting into the Dallas-Fort Worth real estate market there are many opportunities for today’s buyer, whether you are buying your first home, or you are a home-buying pro with many home purchases under your belt. There are many steps in the home buying process where having a professional real estate agent guiding you through those steps is of immense value. One important step is the loan approval process. Unless you are paying cash, getting loan approval before you go house hunting can provide you with extra negotiating power as well as ease your mind.
Here are several good reasons to complete your conditional loan approval process early in your search for a new home.
You will know what you can afford to pay for your new house.
This is probably the most important reason. When you get your conditional loan approval prior to your home search, it allows you to know the true costs involved and to look at homes within your price range. You and your agent won’t waste time looking at properties that are beyond your budget.
It can give you and your agent more negotiating power.
Many loans have different requirements of what the seller can or is required to pay. But when you have conditional approval, you can request concessions from the seller that might be considered in the price.
Sellers are likely to pay more attention to an offer from a conditionally approved buyer.
When a seller receives an offer from buyer with conditional approval, it lets them know that you are serious about buying their home, and able to afford it. It can also put you in a stronger position if there are multiple offers on the same home. A buyer who has gone through the steps of obtaining conditional approval is more attractive to the seller than a buyer that is not approved.
You speed up your buying process.
When you have your financing well in hand and on the way to approval in advance of making an offer, the entire financing process takes less time.
Remember that not all loan approvals are created equal.
Conditional approval is not final approval, it just means that your paperwork and credit have been looked over and you will likely be approved to get the loan — unless something goes wrong. The assistance of a knowledgeable and professional real estate agent can help steer you to a loan officer that can save you potential problems down the road. Make sure to consult with your real estate agent to ensure you are both on the same page with how much house you are wanting to buy.
If you’re in the market for a new home, I would love to help you find it. Today’s market in the Garland, Rowlett and Rockwall areas offers a wonderful opportunity for you to find your new home. Please give me a call at 214-642-1375 or contact me here.