Why You Should Get Pre-Approved Before Shopping for a Home

It's tempting to start the home-buying process by scrolling through listings.

But if you're serious about purchasing a home, there's another step that should happen early in the process:

Getting pre-approved for financing.

What Is a Mortgage Pre-Approval?

A mortgage pre-approval involves a lender reviewing financial information to help determine the amount and type of financing you may qualify for, subject to the lender's requirements and final underwriting.

It gives you much more useful information than simply guessing your budget based on homes you like online.

Why Does Pre-Approval Matter?

Understand Your Price Range

A pre-approval can help establish a realistic range for your home search.

Understand Your Potential Payment

Purchase price is only part of the equation.

Your financing structure, interest rate, taxes, insurance, HOA/CDD fees, and other expenses can affect your monthly housing cost.

Identify Issues Earlier

If there's something that needs attention before purchasing, discovering it early gives you more time to address it.

Be Prepared to Make an Offer

When you find a home you love, you don't want to begin figuring out financing from scratch.

Being prepared can help you move through the process more efficiently.

Pre-Approval Isn't the Finish Line

A pre-approval isn't the same as final loan approval, and buyers should avoid making major financial changes while going through the mortgage and home-buying process without first discussing them with their lender.

Where Do You Start?

If buying a Florida home is on your radar but you're not sure what the first step should be, start with a conversation.

The SJH Real Estate Team can help you understand the home-buying process and determine what steps make sense based on your goals.

Want to start with financing? Contact us or message “PRE-APPROVAL” and we'll help you get started.