Shifting to a new home is not considered easy. People seeking new places to live are already burdened with homework and need to consider locality, affordability and convenience. Loan eligibility also plays a major factor for someone looking at options in realty. But home buyers often skip consulting lenders before checking out houses for sale. The experience turns out like going shopping without a wallet. While it is possible to identify eligible borrowers for pre-approval and attract them individually, not much is being done to make the financial market a mutually more beneficial one.
Gauging the housing scenario is the most important step before planning to purchase a new home. Help customers in that phase as they need information. Due diligence on both, the mortgage and the lender, can help customers choose the best deal possible. It gives them a realistic idea about market rates, and also helps understand where they stand in terms of liquidity and affordability. With pre-approved loans, their life becomes easy, and they get to know where they stand. Before they start, pre-approval is a way to make the road ahead one that is far less blurry.
Let’s look at some of the important reasons why preapproval is a deal maker.
- Realistic expectations: There’s nothing more frustrating than finding a dream house only to realize it’s out of financial reach. Simply basing decisions on the rates that are stated online will not lead customers anywhere. There is always a vast difference between online rates and the actual pre-approved price of new housing structures. They need that information in detail and in a personalized manner. Zero-percent down loans are a thing of the past and putting less money down can substantially increase borrowing costs.
- Sellers like pre-qualified buyers: Being pre-approved gives customers a sense of confidence in home purchase. Property sellers feel greater confidence as well. When customers have a pre-approval letter, they are able to make the deals faster and smoother. There is less hassle for all parties, and it helps the process stay free from other mortgage complications.
- Helps to negotiate closing costs: Buying a new home involves a number of costs. There is the down payment, and a series of other costs like application fees, credit report fees, insurance, lender payment, etc. All of them add up to huge sums of money. While the seller often pays at least some of the closing costs, the buyer may have to share a considerable percentage of the home value. By talking to a lender beforehand, the buyers can get a feel of how much extra money would have to be borne. This way they can negotiate with the lenders to get a good deal and also avoid other complications of covering additional payments.
- Helps to close paperwork: Purchasing a new home means a whole lot of stressful paperwork. Buyers need to submit years’ worth of taxation papers, ledgers and statements for income tax, banks and other institutions to verification purposes. Finishing heavy paperwork takes time and buyers need to get this done before the final closing. By connecting with a lender, buyers can get this finished well within time and also reduce undue stress and likelihood of errors.
Pre-approval is important!
Before the next time a customer arrives with the desire to purchase a home, you should be ready with a tool that will help you decide on the best options and eligibility for pre-approval. Connecting with a customer based on financial habits and income, you can position yourself safely as a pre-approved mortgage brand in the market. It will save you a lot of time and money, and you can end up with great deals, happy customers and fewer hassles for them.