Purchasing real estate can be an extremely exciting endeavor. As a realtor with years of experience, I have guided many buyers throughout the process. Taking the necessary steps to closing on your home with minimal obstacles starts with one of the most important documents, a pre-approval letter. Before searching for your dream home, you need to have a general snapshot of your finances and goals. Below I have outlined some reasons why it is so important to be approved before searching for a home. 

Clear Budget... Obtaining a pre-approval letter helps the buyer understand how much they can actually afford to spend on a home. This prevents them from wasting valuable time and energy on properties that are beyond their financial limits. 

Negotiating Leverage... In most cases, sellers prefer buyers who have been pre-approved because it provides evidence that the buyer is serious and financially capable of making a purchase. This can give the buyer an edge in negotiating a favorable price.  

Efficient Closing Process... Since the lender has already reviewed the purchaser's financials, the underwriting process can be much quicker once they find a property. This can be especially important in a competitive seller's market.  

Avoidance of Disappointment... You found your dream home, that’s awesome! You find out later that you are unable to obtain financing. A pre-approval will help prevent this situation.  

Preparation... If there are any red flags with your credit or finances, a pre-approval letter will bring them up in the beginning stages of the process. This gives you time to address them before you spend too much time into the home-buying process. 

Provides Clarity on Loan Terms... Being approved also provides you with an understanding of the terms of the loan, including interest rates, down payment requirements, approximate closing fees and any special conditions set by the lender and more.  

These are just some of the primary reasons why it is so crucial to obtain a pre-approval letter from a reputable mortgage lender. Contact THE FLORIDA DREAM HOME TEAM today so we can help guide you through the process and recommend a great lender!