Our real estate agents know viewing Atlanta homes for sale is an exciting experience! When you visit a new home, you open up a world of possibilities for the future. As exciting as it all is, it's vital not to overlook any of the important steps in the homebuying process. If you approach buying in a methodical way, you'll be more prepared – and more likely to get the home you want.

The most crucial thing many buyers forget about is pre-approval. In fact, you should take care of it before you even look at homes for sale.

What is Pre-Approval and Why Does It Matter?

Pre-approval is an essential step in getting a mortgage loan.

During pre-approval, a lender examines your finances in detail and determines exactly how much money you can qualify for in your loan package. The loan isn't finalized until you select a home, but you receive a letter from your lender showing that they are willing to extend a financing package to you.

This is different from pre-qualification, which is a more informal discussion of your finances.

In pre-qualification, a lender is giving you a "best estimate" subject to change when your financial information is reviewed. In pre-approval, you are receiving a solid figure for your loan. This represents the amount you would receive if you act within a certain period of time, usually 30 to 60 days.

During that time, you choose a home, use an inspection and appraisal to verify its value, and get to closing.

There are many reasons why pre-approval should always come before you look at homes:

• It Gives You Concrete Facts on Your Budget
  Without pre-approval, you can't truly be sure what your homebuying budget looks like. Even if you pre-qualify, your best estimates could be thousands of dollars off the mark. That can lead to a lot of disappointment! When you get pre-approved, it's very easy to avoid "falling in love" with a home you can't afford.
• It Means You Can Bid on Homes Faster
  Getting through pre-approval now makes you much more nimble in the future. If you see a home you know is "the one," you can put in your bid right away. Beating other buyers to the punch can save you time and effort. It may also endear you to the seller, especially when time is a factor in their own plans.
• It Makes You a More Competitive Bidder
  The best situation is being the sole bid on a great home because you were there first. But what if a home has lots of potential buyers? Sellers will need to start narrowing down their options. With pre-approval, they don't have to wait a long time for your financing to go through, so you can compete against "cash-in-hand" bidders.
• You'll Get to Closing Day Faster
  By accelerating the bidding process, you can take advantage of favorable market trends. Things change fast in real estate, so this can make a huge difference. Without pre-approval, a delay in the process becomes much more likely. You may lose the home you really want or even have to start the financing process from scratch.
• It's One Less Thing to Worry About
  Not surprisingly, financing a home is one of the biggest worries buyers mention to their agents. This isn't just true of first-time buyers: Even experienced homeowners want a good deal that could save thousands across the life of their mortgage. With pre-approval, you have one less thing on your mind and can focus on the homes.

Contact us at Josey Young & Brady Realty to learn more.