Recently, a client absolutely refused to start looking at homes until he had complete loan pre-approval. My response to that was “fantastic!”. I wish every buyer would do that. As a professional real estate broker for the Temecula, Murrieta, and North San Diego CA real estate, a buyer getting their loan approval is vitally important.
In fact, here are five major benefits off the top of my head:
1. You are approved – that means you can actually buy a home!
2. You will know exactly what you can afford, down to the payment.
3. You can focus exclusively on real estate to find the best home.
4. Your agent can save you thousands of dollars if they know their job.
5. Your transaction will be more enjoyable and go though more smoothly.
Taking them in order, the fact that you are now approved means you really can buy a Temecula or Murrieta home, so congratulations! With many people it is one thing to want to buy a home and quite another to realize you truly can. This lets you enjoy all the good feelings of what you are trying to accomplish, eliminating concerns that might cause stress. Home shopping can be one of the most fun things you can ever enjoy. So get pre-approved before you shop and enjoy experience.
Not only are you more relaxed knowing you can buy a Murrieta or Temecula home, but you now know exactly what you can afford. You will also know what your approximate monthly payment will be at specific purchase prices. This is where the fun starts. When you see a home you love, you already know you can buy it. Plus you won’t be looking at homes that are more or less than you can afford. Believe it or not, too many people look at what is outside their range, often with the outcome being disappointment.
With those two issues out of the way, you can now focus exclusively on Temecula and Murrieta CA real estate which is important. Instead of worrying about money, concern yourself with longer term issues like neighborhood locations, school districts, current and future quality of life, and all your other ultimate goals. Buying a home is one of the biggest decisions you make in life and you want to not only enjoy it, but also bring your “A” game to the table.
Another major benefit of loan pre-approval or pre-qualification is the clout your agent can bring by having a fully qualified home buyer. By using this aggressively, it can beat out other offers on a fantastic Temecula, Murrieta, Menifee, or Wildomar foreclosure home. I did that just last week when three offers came in on a Temecula CA foreclosure home that had a big price reduction. My buyer got the house and closing costs fully paid by the bank because of the strength of their loan approval. They got it done and I leveraged it to the hilt to get them the very best deal. Having their loan pre-approval really helped us knock the ball out of the park.
The final benefit is enjoying a smooth transaction. Everything flows better when you do the right steps upfront. By getting pre-approved before you start your search, you will enjoy the process, the real estate hunt, greater long term planning when choosing your home, better bargaining ability, and a silky smooth transaction. The phrase, “luck is the result of a prepared mind” comes to mind. A great Temecula or Murrieta real estate deal happens for those that prepare themselves successfully by getting their Murrieta or Temecula home loan approval from the start.