Biggest mistake home buyers are making in 2024

Are you ready to dive into the fun part of buying a home, the house hunt? Great! But before you start daydreaming about paint colors and backyard barbecues, let's talk about a crucial step you shouldn't skip: getting pre-approved for a mortgage. Trust me, it's like having a secret weapon in your arsenal, let's go over the reasons why.

It Shows You Mean Business

First things first, getting pre-approved sends a clear message to sellers that you're not just a window shopper; you're a serious buyer. In a competitive market, this can make all the difference. Imagine you're a seller juggling multiple offers. Are you going to choose the buyer with a pre-approval letter or the one who's still figuring out their finances? Exactly. Also especially if you are looking at homes over the 1 million dollar range some seller's won't even let you tour their home without first showing that pre-approval. 

Know Your Budget Inside Out

Ever walked into a store without knowing how much cash you have in your wallet(or how close you were to the limit on your credit card)? Probably not the best strategy, right? The same goes for house hunting. Pre-approval gives you a clear picture of how much you can borrow based on your financial situation. No more guesswork or setting your heart on a home that's just out of reach. It's all about shopping smart and staying within your means.

Speed Up the Home-Buying Process

Here's the deal: the home-buying process can feel like running a marathon. But with a pre-approval in your pocket, especially a fully underwritten pre-approval(yes there is a giant difference) you're essentially starting the race a few miles in. Sellers will take you more seriously, and you'll be able to move faster when you find "the one." Plus, your lender will have already started the paperwork, which can shave precious time off the closing process. Who doesn't love a shortcut?

Strengthen Your Negotiating Position

Let's talk strategy. In a negotiation, knowledge is power, and a pre-approval letter is a powerful piece of knowledge. It not only shows that you're financially ready but also gives you a firm footing when discussing prices. You'll be able to make more compelling offers and stand your ground during negotiations because you and the seller both know you're backed by a lender's support.

Avoid Heartbreak and Headaches

Imagine falling in love with a home, only to discover you can't afford it. Ouch. Or, picture finding your dream home, but someone else snatches it up while you're still getting your financial ducks in a row. Double ouch. Getting pre-approved helps you avoid these heartbreaks and headaches by ensuring you're looking at homes within your reach and ready to act swiftly when you find "the one." 

It's Easier Than You Think

Now, you might be thinking, "This sounds great, but it also sounds like a lot of work." Here's the good news: it's not as daunting as it seems. Start by gathering your financial documents (think W-2s, tax returns, pay stubs, and bank statements) and reach out to a lender. They'll guide you through the process, and before you know it, you'll have your pre-approval letter in hand, ready to conquer the housing market! 

Want to have a friendly no pressure conversation about your specific real estate related questions? Schedule a 30 minute discover call with me by clicking here: https://calendly.com/joshalexanderrealestate/over-the-phone-informational-session

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Josh Alexander

THE brokeredge

JoshAlexanderRealEstate@gmail.com

714.366.2186

DRE#:01974435

------------------------------------------Buyer Resources--------------------------------------------------

FREE Guide: How to Budget for a home - https://vid.us/70npzs

Free Guide: Thinking of buying a home, want to know the process and costs involved? - http://vid.us/kk81kx

Get exclusive access to the most accurate home search site available: http://joshalexander.realscout.me

Want to schedule a time to talk one-on-one? - https://calendly.com/joshalexanderrealestate