In this market the answer is yes for several reasons. 1. If you are not pre-qualified there is no way to narrow down the search. Neither do you know if there are issues that would preclude a purchase now. 2. If you are not pre-qualified the time it takes to do so could cost you a purchase since the sellers would not consider your offer. In this tough and tight market with low inventory, time is of the essence. 3. I counsel my buyers not only to get 'pre-qualified', but 'pre-approved' as the first step in the process. Pre-approval is when the lender has taken all of your information to pre-qualify you and also has verified, funds, employment, credit issues, and more. So you are ready to move quickly. 4. Not only will the seller take your offer more seriously by having a pre-approval letter to present, but it narrows down the search for you and your Buyer Agent, and there are no surprises moving forward.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
Sellers will not take your seriously if you try to make an offer that is not accompanied by a preapproval letter.
Realtors will not take your seriously if you expect to look at houses and you are not preapproved to buy.
You should not consider yourself to be serious if you are not preapproved. You don’t even know if you can get a mortgage or for how much.
It is a new ball game as far as the home buying process is concerned. To shop for a home without being preapproved is like going hunting with an empty gun. You will not bring anything home.
One more issue to consider: in today's market, frequently homes are going very fast, sometimes the first day they hit the market. If you find a home you really like, if you aren't pre-qualified for the loan there is a very good chance that you will simply miss out. With multiple offers on a property, a seller will not even consider an offer without the buyer being pre-qualified for their loan. And, with many lenders, you can get this process started and get your prequal letter very quickly.
Best of luck.
Your Castle Real Estate
Cherry Creek Properties
Also, in this market, without a pre-qual letter, when you make an offer, and the seller is looking at your offer among others, you will not be chosen. That pre-qualification is crucial if you are serious about purchasing a home!
And, also what Michael said below, as an agent, we have no starting point for buyers without a pre-qual price in mind.
Associate Broker Keller Williams Downtown
In the mean time, if you'd like to start a home search with a local expert, I'd love to chat with you about your needs and wants in a new home situation. Feel free to call or email me anytime!
Keller Williams Realty Downtown
Prudential Real Estate of the Rockies
(Soon to be Berkshire Hathaway HomeServices)
Prequalifed means nothing, unless a buyer has had a full tri-merged credit report pulled, and has supplied a lender with the necessary paperwork so that they can verify the buyers income and assets, then neither the buyer, their agent of the seller has any real idea of whether the buyer can in fact get a mortgage or not. As most areas of the country are seeing less than 6 months worth of inventory on the market which indicates a sellers market, sellers shouldn't and won't give much credence to a buyer who isn't prepared with a full preapproval letter that accompanies their offer.
Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.
Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order. Again, when you make an offer and you have your Home Inspector ready to go, your offer will be considered with much more interest by a Seller because you truly have your "ducks in a row" and your preparation demonstrates your serious attitude about conducting the purchase transaction in a timely manner.
Find an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.
*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
If you are not preapproved no agent will waste their time writing an offer for you. Many will not even show you properties unless you have been preapproved.
Kawain Payne, Realtor
Prudential California Realty
Tenant Screening USA
Much success in your home buying process, I'm here to help in any way you might need!
Bill Pearson GRI, SRES |"Your Denver Realtor For Life"
ERA Herman Group Real Estate| 201 Columbine Street| Suite 301| Denver CO 80206
5280 Magazine FIVE STAR Real Estate Professional – 2010, 2011, 2012
If you need help getting qualified I would be willing to help you out.
Keller Williams Advantage Realty LLC