One of the most common home buying myths that exists is that when buying a home, you should find a home before getting a pre-approval. Below are the top reasons why real estate agents will request a pre-approval letter before showing houses to a buyer.
Provides proof of ability to obtain financing. The reality is that not everyone can get a pre-approval. Real estate agents want to make sure that a buyer can get a pre-approval before spending their time driving around town showing houses to a buyer who cannot obtain financing.
A pre-approval provides a buyer, and their real estate agent, information as to what price range they should stay within. What can end up happening is they find out they cannot afford the home they fall in love with which leads to lots of wasted time, frustration, and also heartbreak.
In addition to requesting a pre-approval from buyers prior to accommodating a showing, most sellers will also require a pre-approval with any purchase offer. A purchase offer without a pre-approval is only as good as the paper it is written on as it’s nearly impossible for a seller to truly know if a buyer will be able to obtain financing.
Buying a home is a big deal. There are certain steps that need to be taken in order to be successful. A real estate agent who requests a pre-approval from a buyer before showing them homes is only attempting to represent the buyers best interests.