I know it’s easy to allow emotions to get the best of you when you are in the midst of a low supply and high demand market for homes like we see in the Dallas area as well as across Texas. However there is a buying strategy that will help your purchase offer get noticed.
There are many steps in the home buying process where having a professional real estate agent guiding you through those steps is of immense value. There is one step, unless you are paying cash, that will provide you with immense negotiating power and ease of mind — that step is obtaining loan approval before you begin shopping for your new home.
Following are five reasons to get a conditional loan approval before you begin your home search:
- You’ll easily determine how much home you can afford. Obtaining a conditional loan approval from your lender before you begin searching for a new home allows for you and your lender to strategize the best loan scenario and cost outlay for your financial goals. This will not only give you peace of mind when shopping for your home but put you and your real estate agent on the same page from the onset.
- It will assist your real estate agent when it comes time to present a contract offer. Having a team strategy that consists of you, your real estate agent, and your lender is powerful. Giving your real estate agent the purchase strategy in advance will allow the agent to pre-determine your buying leverage when presenting a contract. There are many loan programs that have a variety of lender requirements from what the seller can or must pay to your to your own contributions. Getting the conditional loan approval by your lender will help put your offer at the head of the pack.
- Listing agents pay attention to offers from approved buyers. A conditional approval letter informs the homeowner and the agent representing them that you are serious about purchasing and that you are approved subject to normal loan and property conditions. This provides you with advantages in negotiation and a stronger position with the seller, especially if multiple offers are received on the home that you want.
- You increase the speed in which you can close. When your mortgage loan is all but taken care of before you find the home you want to purchase, the whole process is faster, saving you time when you find that right home.
- Saves you potential heartache. Knowing the loan terms, conditions, and financing strategy in advance can save you and your real estate agent from guessing when it comes to your contract offer. There are many contracts presented that later have to be rescinded because the buyer failed to qualify or needed more contributions from the seller. Avoid that from happening by getting your loan approval first.
If you’re thinking of purchasing a new home in Texas, feel free to call me at (214) 770-1499 or get started by completing the form below. I would be glad to serve you with your real estate financing needs.