When it comes to the “nitty-gritty,” which includes home loan shopping, home buyers like to just get through it as quickly and painlessly as possible. Sometimes they do very little research and grab the first offer given, regardless of the rate or what else might be out there. This approach can often be harmful and costly in the long run. Many buyers fail to understand the importance of shopping for a loan, finding a loan, and finding a good loan. When this happens, the new homeowner might have a great home but a bad mortgage deal.
WHY GET PRE-APPROVED?
What’s the big deal about getting pre-approved for a mortgage? What’s wrong with going through the home-search and home- buying process first, and then getting the loan later? There is plenty wrong with waiting until the end for loan approval, and plenty of advantages in getting pre-approved for a mortgage, before you get too far into the home-search and home-buying process. One of the most common mistakes made by buyers is not getting pre-approved for a home loan, as we discussed earlier. For example, many sellers and listing agents won’t want to work with you or even consider your offer if they find out you don’t have mortgage loan pre-approval and you’re promising that you can pay a certain amount when you can’t prove you can keep that promise. You will most certainly lose out on getting that home 161
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