Do I need to be pre-approved to buy a home before house-shopping?

Powell Place Home

A question some clients ask me is “Do I need to be pre-approved to buy a home before house-shopping?”

Yes and no.

If you are very confident that your credit is good and your income to mortgage ratio is good, then no, you probably don’t HAVE to get pre-approved.

Some sellers and their listing agents want to know that you are “mortgage-able” before negotiating.

If multiple people are looking to purchase the same property and you make an offer contingent upon your ability to get a loan, a seller may go with another bidder. Some people relocating to Pittsboro discover that bidding does occur in some of Pittsboro’s neighborhoods.

If you are serious about buying a home in the near future, getting pre-approved now doesn’t hurt.

If you are making a formal cash offer on a cash only purchase then bank statements sometimes come in to play.

All cases are very different. If you’re not sure, call me today and I can go over your options with you.

Sometimes people who are per-approved “lock in” their interest rates. This can be a good idea when interest rates are rising. As of July 2015, interest rates have been on the rise. Some people lock in their rates for 30 – 60 days. Interest rates fluctuate all the time (historical interest rates). In North Carolina, potential homebuyers can check their rates here at mortgage interest rates today in NC.