Is a pre-approval a good idea? Lancia Homes suggests finding pre-approval details to make the process of buying a new home a little easier. It is a lead-in that eases the financial components of home buying. New Home Builders work with the elements provided by both the customer as well as the eventual financer.
Buyers want to have their options both widened and closed. Any option closing should be done willingly and by choice and not by the circumstances of the purchase. For example, a couple has the choice of 20 homes narrowed down by the basic pieces including the zip code and price. But, a few homes have to be removed from the equation due to financing. The bank won’t finance a property that needs any care. The risk of the mortgage loan is too high. The couple has removed some options solely due to something that was not immediately in their control. Few things are as frustrating as seeing external circumstances limit the potential choices at one’s disposal.
This dilemma for New Home Builders can be partly resolved by pre-approvals. Pre-approvals are not foolproof. They come with a few strings attached. Just like a pre-approval for a credit card, there are stipulations. But, the pre-approval removes some of the mystery from the purchase. It determines the range where a buyer is functionally able to buy in. it also establishes the condition (within reason). Can the house be used? Can extensions be added?
It helps in new home sales because it offers the real estate professional a clear idea of what the buyer is capable of. They can then pinpoint homes that fit the financer’s interests as well. This avoids the catastrophe of having a home selected only to have it rejected due to mortgage management. It is a discouraging feeling.
The lenders are not the bad guys. They have interests they need to defend. A pre-approval can circumvent many of these concerns and offer a more upfront assessment of what can be purchased. It helps everyone find the perfect fit while also avoiding a fantastic home falling to the wayside due to exterior elements. You can follow them on Pinterest.