I am asked by Buyers all the time why is a pre-approval so important before they look at houses. Often they say they want to look first, decide on the house then start the pre-approval process. Well, there are problems with that thought process. One of them is the market right now is very fast-paced. Let's say we look at a house and it is the perfect house and you want to put in an offer. Now the problem is the Seller has placed the condition of all offers must have a pre-approval letter accompanying them. By not taking this step first, you are putting your family in jeopardy of losing your dream home. Having a pre-approval letter also lets the Sellers know you are serious about your home search and at some price points, the Sellers require the pre-approval letter just to tour their home.
Also as a Buyer, knowing what your budget is will bolster your confidence. Having a pre-approval can tell you how much home you can afford, enable you to make a faster decision with confidence in a fast-paced, competitive market.