Danielle Lazier

Buying a home in San Francisco? Why it’s crucial to get preapproved for financing before beginning the house hunt.

If you are buying a home in San Francisco, it is crucial to get preapproved for a mortgage before beginning the house hunt.

Why?

1. You’ll know exactly what you can afford. Understanding your purchasing power and any limitations * is integral to an efficient, focused home search. Spend your time looking at homes you can afford to actually buy. By focusing on homes that meet your needs, you’ll get a sense of market value for yourself and be able to make a smart decision as to which home to buy. There are many advantages to loan preapproval when SF home buying.
2. Real Estate Agents will take you seriously. (At least, the experienced ones will.) Working with a great buyer’s agent is key, and a great agent will insist that loan preapproval is one of your first steps.
3. Sellers will take you seriously. In SF, your offer on a home will simply not be taken seriously unless accompanied by a preapproval letter from a reputable mortgage broker or banker.
4. All in all, you’ll get a better deal. The best deals in the competitive SF real estate market go to focused, preapproved home buyers working with credible, assertive agents.

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Tags: loan preapproval, preapproval letter, preapproval v prequalification