Home BUY Should I get pre-approved for a mortgage before I search for a home?

Should I get pre-approved for a mortgage before I search for a home?

by List & Found
Should I get pre-approved for a mortgage before I search for a home?

If you’re getting a mortgage to purchase a property, the answer for anyone looking to buy in the Los Angeles area, is Yes.

Here are the reasons why

  1. Inventory in the L.A. area is still at historically low levels. Interest rates are also still at historically low levels combine that with rising rents means there are more than enough buyers looking to buy.  Multiple offer situations have become the norm here in L.A. So having that pre-approval letter can help you stand out.
  2. L.A. is massive and different neighborhoods command different prices. With the market being so competitive you should do everything you can as a buyer to focus on an area you know you have the greatest potential in finding a property. So getting pre-approved and having a true picture of what your budget is will allow you to narrow in and focus on the areas where you’ll have the greatest success of finding a property.
  3. When a good property that is priced right hits the market in Los Angeles you can expect to have multiple offers right away. So you want to be ready to go and be in position to submit an offer. Sellers today expect to see proof of funds to purchase ( financial statements ) along with pre-approval letters with all offers. If an awesome property hits the market and your offer is the one without the necessary documentation you risk your offer being taken out of the running if it’s a multiple offer situation.
  4. Sometimes there are things that linger on our credit reports and or in other areas of our financial history and going through the pre-approval process will help you figuring this all out and getting your ducks in a row. It also shows a seller you’re serious and you’ve done the leg work and your a buyer who can close.

“BY FAILING TO PREPARE, YOU ARE PREPARING TO FAIL” BENJAMIN FRANKLIN

Benjamin Franklin

 

Don’t allow this to be you. If you want more advice and have more questions you can always reach out  CONTACT ME.

 

 

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