There Are A Number Of Advantages That A Prequalified Buyer Enjoys

Category: Finance, Mortgages.

Almost every homebuyer has been told at some point that they should be prequalified for a loan, but too many ignore that advice.

There are a number of advantages that a prequalified buyer enjoys. The major reason they disregard the advice is that they don' t understand the reasons for prequalification. Here are just a few of them: - Better service from brokers. - More realistic price range. - More negotiating power with sellers. - Peace of mind. Imagine this: it's Saturday morning, prime selling time for real estate brokers. Better Service from Brokers. You' re a broker, and you have two clients who are interested in looking at houses today.

You have some doubts about the other buyer. One client has been prequalified by a lender you know and trust, so you are sure the buyer can afford the homes you' re showing. He seems a little shady. His car is older, and you just can' t be sure if he is wasting your time or not. Although he claims he can afford the houses, he doesn' t dress like it. Maybe he's one of those people who just enjoy looking at other people's houses.

The answer, is the prequalified, of course buyer. Which buyer are you going to choose to work with today? As a broker, you need to maximize your time. You may still work with the" shady" buyer, but you' ll schedule him for an evening during the week. You' ll go for the sure thing, every time. You may also show him 4 or 5 houses before giving up, instead of the 18 houses you show to a qualified buyer.

Have you ever fallen in love with a house, to your shock, only to discover, that you couldn' t afford it? More Realistic Price Range. It's happened to almost everyone at some point. Prequalification also prevents the opposite problem. But, this heartbreak can be prevented with a prequalification. Some homebuyers seriously overestimate the monthly mortgage payments. When you are prequalified for a loan, you' ll have objective information to base your decisions on.

That means they may be looking at houses in the$ 300, 000 range when they can actually afford a house up to$ 450, these buyers are, 00Essentially cheating themselves- and their families. But the biggest reason you should be prequalified for a mortgage is the peace of mind that it brings. Will my loan be approved" When you' re prequalified for a loan, you' ll be able to focus on finding the best house for your money. If you' re not prequalified, every time you look at a house you' ll be wondering, "Could I really afford this? And, that's the best reason to be prequalified.