Whether you are buying or selling a home, having it appraised is a crucial part of the process. It lets both you and your mortgage company know the true value of the house, so you can secure the appropriate funding to pay for it. As a seller, it also lets you know what a fair asking price is. Ultimately, it is an essential component of closing on a home, so you should understand what it consists of. In today’s blog, Bill Swanson and The Swanson Group in Omaha, NE, discuss what you need to know about home appraisals.  (more…)

When you are trying to buy a home, there are a lot of steps you need to take before you close and eventually move into the house of your dreams. Getting pre-approved is one of the very first things you must complete. This can seem pretty daunting for buyers — especially those who haven’t gone through the process before — but it is a very straightforward undertaking that ultimately streamlines the entire home purchasing experience. In today’s blog post, Bill Swanson and The Swanson Group discuss the importance of pre-approval when it comes to buying a home. 

What Is Pre-Approval?

It is when a lending institution thoroughly looks at your financials to determine the amount of money you can reasonably spend on a house. It involves the potential lender pulling your credit score, which ends up informing sellers if you have the means to buy their house. It is a hard pull, which means your credit score may take a minor hit. After this process concludes, you will receive an official letter that states your purchasing ability. 

It is important to note that there is a distinction between this and pre-qualification, which is a soft pull that doesn’t affect your credit. This is done more to let buyers gain a better sense of what they might be able to afford. It might be helpful to consider pre-qualification as an unofficial step before the more official pre-approval. 

What Are The Benefits?

In addition to most sellers requiring an approval letter, there are personal benefits, too. A pre-approval accurately lets you know what you will be able to pay for a house. This effectively sets parameters on your search, which can be helpful when you are in the market for a home because the process can seem so daunting. Getting pre-approved lets you move quickly when you find a house you love, and it also shows the seller that you are serious about any offer you happen to make. When there is a home you can see yourself in and want to buy, having a letter will lessen the amount of back and forth between you and the homeowner, leading to a faster selling and negotiation process. These days, homes are flying off the market very quickly, and this letter can help move you to the very front of the line.

The Steps You Need To Undertake

Before you undergo this early process, you will need to gather a handful of financial documents. These typically consist of a month’s worth of paystubs, two years of either tax returns or W2’s, and quarterly account statements for your various assets — whatever they may be held. You will also want to have your credit score on hand. Overall, you want to be able to provide an accurate representation of your budget in order to move ahead and have a smooth experience.

Contact Us To Learn More About Pre-Approval

If you are in the early stages of the home-buying process, we can help you move forward and make progress. The Swanson Group can help you make efficient decisions that put you in a strong negotiating position as either a buyer or a seller. Not only can our team help you buy or sell a home, but we can also connect you with trusted home loan officers and staging professionals to help you with every single step of the process. Start working with The Swanson Group today by contacting the Omaha, NE office at 402-679-6566.