As a real estate agent, I’ve seen many clients skip the pre-approval process when buying a home. It seems like such a small step, but I can’t stress enough how important it is to get pre-approved before house hunting. Skipping this process can lead to significant financial losses in the long run. In this blog, I’ll highlight five reasons why you should never skip the pre-approval process when buying a house.

1. Understanding your Budget is key 🤑

Knowing your budget when buying a home is essential. You don’t want to fall in love with a house only to realize later that it’s too expensive for you. Getting pre-approved will give you a clear understanding of your budget and help you to narrow down your search. Without a pre-approval, you could end up wasting time and money viewing homes that are not within your budget.

A calculator with the words "budget" written on it.

2. Pre-approval makes you a trusted buyer 🔐

When you make an offer on a house, having a pre-approval letter from your lender makes you an attractive buyer. Sellers will see that you are a serious buyer who already has the funds to back up your offer. Pre-approval gives you a chance to show that you are a trusted buyer, increasing your chances of winning the bidding war.

A person holding a key indicating "trusted buyer".

3. Avoid wasting time and money💸

House hunting can be a time-consuming and costly process. Going through the pre-approval process first can save you from unnecessary expenses and disappointments. It gives you an idea of what you can afford, so you don’t waste your time on homes that you can’t afford. Save time and money by knowing your budget early on.

A person holding out empty pockets indicating "saving money".

4. Be aware of other costs 🔍

When you go through the pre-approval process, you are provided with all relevant information regarding fees, additional costs, and interest rates. This information allows you to plan accordingly and have the best idea of what to expect financially during the home buying process. If you skip the pre-approval process, you might be hit with unexpected costs that could damage your budget.

A magnifying glass on a stack of money indicating "being aware of costs".

5. Peace of mind 🧘‍♀️

Buying a home is a long-term investment— you want to be confident in your decision. Having a pre-approval letter in hand provides you with the peace of mind that you’re investing in a house that you can afford. You can move forward knowing you have already taken steps to ensure financial stability.

A person sitting down with the word "peace" above them indicating "peace of mind".

In conclusion, skipping the pre-approval process could cost you more in the long run. Getting pre-approved provides you with a full understanding of your budget, saves time and money, and gives you the peace of mind that comes from making an informed decision. As a real estate agent, I cannot emphasize enough the importance of going through the pre-approval process for anyone who’s planning to buy a home.

A house with a checkmark indicating making an informed decision.