Reasons you may be reluctant to get pre-approved
I’ll confess, I haven’t always gotten a pre-approval letter before looking at a house for sale. There I’ve said it, the air is clear. You may also be wondering if you should go through the steps to get preapproved before looking for a house. Let me share some common reasons why you might not and instances where it would be in your best interest to do so.
- You just noticed a house for sale that you’ve always had an interest in and haven’t had time to get preapproved.
- You are a cash buyer or are very knowledgeable about your financial situation.
- You may have recently experienced credit issues and are afraid of the response you may get. It can be embarrassing.
- You have a current home to sell first and you don’t want two mortgages, so you don’t see the need in applying.
- You are afraid too many credit checks will hurt your credit score.
- You are a private person and keep information closely guarded. I understand I do too.
- You don’t personally know a good mortgage broker to contact.
Those are all valid and understandable reasons. Like I mentioned before, I’ve been there. Let me share a few reasons why you may want to reconsider.
- While it isn’t very common in Jackson and West Tennessee there are some listings that won’t allow showings without a letter from a lender stating that you are pre-approved or have the funds to purchase outright. If inventory continues to remain low, I could see this trend rising.
- When you find the house you love and want to make an offer there could be other buyers that have the same idea. If they both have their letters in hand and you don’t which offer is the seller going to give more thought to?
- If you fear troubled credit you aren’t alone. While it may be uncomfortable to face rejection from a lender, many can give you a few tips to get you back on the road to approval in very short order.
- You may be surprised by how high or how low a monthly payment may be. I have dealt with disappointed buyers who were using online payment calculators not realizing it was applying a 20% down payment and not calculating taxes and insurance. I’ve also been with buyers who realized they could afford substantially more that they initially thought. Getting started in the right price range can make a tremendous difference.
Are you looking for a lender or mortgage broker to work with? I’ve had the pleasure of working with great ones over the years. I’d be glad to get you in touch with someone. Just send us a message and let us know you’d like help finding a lender to talk to. We can have someone reach out to you.