Buying your first house isn’t always easy. Especially if you are living in a seller’s market. A seller’s market is as simple as it sounds, the seller has more power to control the sale of their home because there are more buyers than there are sellers. As a buyer you should ensure you have everything in order before making your offer. One of the common questions that comes to mind is, “should I prequalify before I find the house I want?” The simple answer to that is yes, and here are 5 reasons why.

Number 1: Pre-qualification gives you an idea of how much a lender could finance for you based off the documentation you submit. Essentially, it gives you a jump-start on your mortgage loan and a house hunting budget as you start your search.

Number 2: Getting pre-qualified can make your offer more attractive, which lets the seller know that you are serious about purchasing a home. Sellers want to sell just as much as you want to buy. Typically, they may look for the offer that will make the process faster.

Number 3: If you have already been pre-qualified, then you have a price range that allows you to map out additional costs that come with a home. Some borrowers may not wish to use the higher end of their price range to ensure they are still within their budget after additional home expenses such as closing costs, insurance or any needed repairs.

Number 4: You can now surpass buyers who have not started their pre-qualification process. Sellers will have more confidence in a buyer who has went through the pre-qualification process versus a buyer who is just getting started.

Number 5: Additionally, some real estate agents and sellers may not work with you without being pre-qualified, which drastically limits your home search. Having a pre-qualification can keep your options open.

While pre-qualification is not required to buy your home, it can lay out the groundwork and put you in a better position. First Savings Bank has local mortgage lenders ready to get you in the home of your dreams. Check out our approval checklist to learn more about what is needed when applying for a loan or reach out to a mortgage lender if you are in the market for a new home and want to get pre-qualified.

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