Should You Get Preapproved Before Looking At Homes?

If you're thinking about buying a home, one of the first questions that often comes up is whether you should get preapproved before you start looking.

In most cases, my answer is yes. Getting preapproved doesn't mean you have to buy tomorrow. It simply gives you a better understanding of your options before you start falling in love with homes.

Know What You Can Comfortably Afford

A preapproval gives you an idea of how much a lender may be willing to lend you, but I think there's another number that's even more important: the monthly payment you're comfortable with.

Your lender can help you look at different purchase prices, down payments and interest rates so you have a realistic budget before beginning your search.

Don't Forget the Florida Keys Expenses

Here in the Florida Keys, the mortgage is only part of the picture. Flood, wind and homeowners insurance, property taxes, HOA or condominium fees and other expenses can significantly affect your monthly cost.

A good lender can help you understand how these expenses may affect your buying power.

You'll Be Better Prepared to Make an Offer

When the right property comes along, things can sometimes move quickly. If you haven't spoken with a lender yet, you may find yourself trying to get everything together while another buyer is already prepared to make an offer.

Having a current preapproval can also show a seller that you've already taken important steps toward obtaining financing.

You May Discover Something Early

Sometimes the preapproval process uncovers something that needs attention—a credit issue, documentation requirement or a change that could improve your financing options.

It's much better to discover those things before you're under contract.

Preapproval Isn't the Same as Final Approval

It's important to remember that a preapproval isn't a guarantee that your loan will be approved. The lender will still need to review the property, your finances and other information during the loan process.

It's a starting point, but an important one.

Preparation Makes the Search Easier

Looking at homes is the fun part, but knowing your numbers first can make the entire experience less stressful.

Getting preapproved helps you focus on properties that make financial sense, puts you in a better position when you're ready to make an offer and helps prevent surprises later.

There's nothing wrong with dreaming about the perfect home. It's just a lot more enjoyable when you know the numbers can work too.