Why is it important to have a pre-qualification prior to getting out there and really looking for a new home in Arizona?
Real estate in Arizona is very competitive, especially when you are first time home buyer. Chances are once you find your favorite move-in ready property, it will also be somebody else’s favorite as well. It is crucial that you have gone through the mortgage process of providing full documentation to a lender so that when the moment comes that you find your favorite home, you are ready to make an offer. You need to be pre-qualified because there is a shortage of inventory, and if you found the right place, you don’t want to let it get away.
Determine how much you can afford
Pre-qualification is really just a lender’s determination of how much money you will be eligible to borrow. It should only take about 15 minutes and once you are pre-qualified, you’ll know exactly what price range you can afford. Most importantly, you can see if there are any errors on your credit report and you can resolve them right away.
It narrows down the property you should consider
When you know your budget, you also know what price range of property you can afford. This will save you, as well as your realtor, a lot of time and energy because you can focus on the property that are actually in your price range rather than property that would ultimately make you house poor. It really makes no sense for an agent to show a client a home priced at $400,000 if they can only afford $285,000.
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Stay competitive when making offer
Also, pre-qualification is important because you want to make sure you are being competitive. If listing agents are seeing multiple offers for their homes and yours is lacking certain documentation, such as W-2s, it is going to raise some questions. Since inventory is low and multiple offers are likely, it will cut certain offers out of the running quickly.
Instilling confidence to seller
The biggest reason you want to be pre-qualified is that you are instilling confidence in the seller. This can be as simple as having your lender to reach out and introduce themselves and talk about you as a buyer and a person.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ area, we hope you will consider us. Contact us today for complimentary consultation.
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