Why You Really Need To Get Approved To Buy A Home
—Before You Start Looking
By Teri Arbogast
You have been online looking at homes you think are in your price range and hopefully you’ve found a top Broward County realtor to help you (like us!) The time has come to go out an view homes…but are you really ready?
First of all, just trying set appointments to view homes before a buyer has qualified can be tricky. In today’s competitive Broward County real estate market, most of the top producing agents won’t even allow access to their listings to agents whose buyers haven’t received a pre-approval or DU loan approval. (DU approval is a Desktop Underwriter approval, which means a mortgage broker has reviewed your basic documentation, debts, credit report and income verification.) More and more sellers are not willing to take the time to prepare for a showing, leave their home and open it up to people who are not even able to buy it.
Secondly, it is better to save yourself any unnecessary heartache. For homebuyers, the importance of obtaining a loan DU approval upfront saves everyone time and the prospect of crushed dreams. You don’t want to find your perfect home, get the entire family excited about it, only to find out the home is beyond your price range.
Knowing the type of loan you qualify for is also extremely important. What’s the point of spending time looking at homes that are not approved for FHA based loans, when you are only qualified for that type of loan? Knowing the type of loan you qualify for is as important as knowing how much you qualify for.
Find out how much you qualify for and what type of loan by getting approved first. Then spend your valuable time looking at only the homes that fit your price range and mortgage program.
The solid “DU approval” is important in getting your offer accepted.
Once you’ve found your home it is even more important that you have already received a strong approval. A strong DU approval letter will prove to sellers that you are a serious buyer and your offer will take a strong lead over others buyers that are only presenting a flimsy “prequal” letter.
Did you know that most of the top agents in town with the biggest inventory of homes, won’t even review an offer without a DU approval attached. It may be too late to buy the perfect home if you wait until you are ready to make an offer. There is a strong possibility that you will be competing with other buyers. If they have listened to their experienced realtor, they most likely will be presenting a strong DU approval letter and gain the advantage. Get your documentation together and reviewed before you find your dream home, It most certainly will save you a lot of grief later on.
Getting the DU approval can help save you from throwing your hard earned money away.
Let’s say you do get an offer accepted with just a simple prequalification. You shell out $450-$500 for an appraisal and another $450 for the home inspection; only to find out 3 weeks later that your loan has been denied. In today’s “post mortgage crises” lending industry, getting a loan is like pulling teeth…without much pain medication! The lenders go over the documentation with a fine tooth comb and no stone is left unturned. Better to get the DU approval upfront.
When you win, we all win. We work with several different lenders who help us to GET YOUR OFFER ACCEPTED. Unlike the big banks, they take a much more personal approach and they have access to special programs and rates that not all lenders have. They keep the title attorneys, realtors and the buyer up to date and involved throughout the loan process.
Let us know if you are ready to get serious about buying a home and we will arrange a quick, confidential, no obligation consultation. This really is the first step to home ownership and possibly the most important one.