Kim Bass: The Importance Of Pre-Approval

Wednesday, June 19, 2019 - by Kim Bass, president, Greater Chattanooga Realtors

When looking to purchase a home, sometimes buyers can put the cart before the horse. It’s easy to get swept up in the idea of buying a new home. One piece of advice I give to anyone is to get a pre-approval for your home loan. If you don’t seek a loan pre-approval before you start looking, you might actually prevent yourself from finding and buying your dream home. Here’s why:

Streamlined Hunting With Pre-Approval
Most homeowners start out by browsing homes for sale online to get an idea of what neighborhoods and housing styles they like. If you don’t know what you can afford, you may be looking out of your price range and wasting your time. You may also be looking below what you would have qualified for and not getting the right home for you. If you start off by getting a pre-approval, you can search by price, identify the right neighborhoods, and find your dream home much faster.

Better Results From a Realtor
The bottom line is this: Realtors prefer to work with home buyers who have a pre-approval in hand for two reasons.

First, a realtor knows the deal isn’t likely to fall through. Second, when they know what you want and what you can afford, so they are able to do a better job of finding your dream home. For example, you told a realtor you want a historic home, but the asking price for these homes varies widely. If they don't know what you can afford, they can only do a general search across several price ranges and may miss hidden gems.

On the other hand, if you have pre-approval, a realtor would know what exactly what to focus on and would be able to suggest different neighborhoods, sizes and conditions of homes to match your needs—making it easier to get you exactly what you want.

Higher Acceptance Rate for Buyers With Pre-Approval
Once you find the perfect home, the next step can go two different ways depending on a pre-approval.

If you’re not pre-approved and you find a home you want to make an offer on, you’re taking a gamble. Realtors and sellers are less willing to accept offers from a buyer without a pre-approval. Odds are, they’ll go on to the next offer—and you’ll miss out. However, if you are pre-approved, you have more room to haggle. Sellers may be more willing to lower the asking price, include appliances, cover closing costs or make other allowances to work with a pre-approved buyer.

Less Stress With Pre-Approval
Finally, skipping this step can wreak havoc on your stress level. If you aren’t pre-approved, you’ll spend longer looking for homes, and you may not feel like you’re getting great service from a realtor. You may get turned down once you’re ready to make an offer. All of this adds more time and stress to what should be a very exciting time in your life.

On the other hand, if you’re pre-approved, you have less to worry about: you know you’re a qualified buyer, you know there are lenders willing to work with you, and you can feel pretty confident when you make an offer.

As realtors, we are here to help guide people through this process, and getting pre-approval for a home loan will definitely make the process much smoother.  Realtors give expert guidance because That’s Who We R.




Kim Bass: August Housing Market Statistics

Real Estate Transfers For Sept. 5-11

Capital One Closes Freddie Mac Loans Totaling $31 Million For Chattanooga Apartments


As the summer is drawing to a close, multiple opposing factors and trends are competing to define the direction of the real estate market. After the Federal Reserve lowered its benchmark interest ... (click for more)

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding ... (click for more)

Capital One announced on Tuesday that it has provided Freddie Mac loans totaling $31 million for the acquisition of two Chattanooga apartment communities, the 200-unit Evergreen at Hickory Valley ... (click for more)


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Kim Bass: August Housing Market Statistics

As the summer is drawing to a close, multiple opposing factors and trends are competing to define the direction of the real estate market. After the Federal Reserve lowered its benchmark interest rate on July 31, 30-year mortgage rates continued to decline, approaching all-time lows last seen in 2016. Yet most experts agree these reductions are unlikely to bring sufficient relief, ... (click for more)

Real Estate Transfers For Sept. 5-11

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding this report, please call Chattanoogan.com at 423 266-2325. GI numbers, listed when street addresses are not available, refer to the location of transactions (book number and page number) in ... (click for more)

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