Thinking of buying a home in Champaign-Urbana? If so, you will need to get a pre-approval letter from the bank (unless you plan on paying with cash). It’s not just something we recommend doing, it’s something you will NEED to do, or you can’t put an offer in on the house you want (or any other house, for that matter)!
There are three major reasons why you need a pre-approval letter, and why it’s important:
1. How else can you possibly know what you can afford to buy? Sure, you may have a good “ballpark figure” of how much you can afford based on your rent, income, etc…but how do you know that the bank will actually give you that much money, and on terms that are agreeable to you? You don’t. You won’t know until you’ve talked with the lender. So, what are you waiting for?
2. You might fall in love with something you can’t afford. We’ve seen it happen. The buyer is “completely certain” that she will be able to get a loan to purchase a Champaign-Urbana home in a certain price range, she falls in love with a house, and then she is denied for a loan…from multiple banks. It is NOT easy to get financing these days, so before you fall in love, cover your bases and get your pre-approval letter!
3. Home sellers in Champaign-Urbana will NOT take your offer seriously (probably won’t even look at it) unless it is accompanied by a pre-approval letter. Our policy is that we won’t submit an offer without that letter, and many other agents follow the same guideline. Why? Try putting yourself in the seller’s shoes. You’re trying to sell your Champaign-Urbana home, your biggest asset, and someone who you don’t know promises that he can get a loan to buy your house. Without having any proof, would you believe him? Would you risk taking your home off the market for possibly weeks just to find out that the buyer couldn’t get a loan after all causing you to waste all kinds of time and money? I wouldn’t, and you wouldn’t either. Submitting an offer on a house without including a pre-approval letter is simply a waste of everyone’s time…including yours!
When you object to talking to a lender, you’re sending a message to everyone that you have no real intention of buying a home in Champaign-Urbana. So if you’re serious, go get that pre-approval letter!
Not sure where to begin? We’d be happy to recommend several reputable lenders in the Champaign area. Contact us today and we’ll help you get started.