Sometimes buyers are hesitant to get pre-approved early in their home buying journey. While the video below provides a few good reasons why you should consider getting approved right away, I’d like to point out a couple other great reasons.



There is nothing more disappointing than finding a home and falling in love with it only to find that your overall monthly payments are higher than your budget allows. Getting pre-approved early can help you understand any additional monthly costs that will be included in your mortgage payment.

Some examples of monthly costs in addition to your principal and interest are taxes, homeowners insurance, CDD, MIP or PMI payments and homeowners association payments.

Another important reason to get pre-approved prior to looking at homes is to be ready to make an offer as quickly as possible. In today’s market, in certain price ranges, the best homes are still selling very quickly and there are sometimes multiple offers. To make your offer as competitive as possible, your agent should submit your pre-approval letter with your offer. This will allow the seller to see that you are a well qualified buyer. Some sellers require a pre-approval be submitted with your offer. In a fast moving market you can lose out on the home of your dreams before you can complete your pre-approval process.

Lastly, another great option is to be pre-approved with a “TBD” property. This is when a lender allows you to go through the entire loan approval process prior to finding a home. Once you have an approval and have found a home, all your lender needs to do is have your appraisal completed for final loan approval. This makes your offer especially strong as it makes your offer similar to a cash offer.

Setting a consultation with an agent before you are pre-approved is best. This will give you a chance to get familiar with and understand the home buying process. If you don’t have a lender, your agent should be able to refer you a few good lenders who they trust and have worked with in the past when you meet.

Feel free to reach out with any questions. We’re here to help!