A Starbucks Barista, an Internet Monkey, and a Fake Preapproval

Unless you’re buying a home with cash, working with a great lender is essential. Not doing so could cost you the home of your dreams and waste both time and money. Here’s why.

Transcript:

How well do you think it would go if you went to buy some Starbucks, but when they asked you for payment, instead of giving them money, you told the barista, “Let’s not worry about that. I’m good for it.” Now, if you wouldn’t do that when buying a cup of coffee, why would you do that when buying a home? I’m Eric with Eric Andersen Homes, and believe it or not, would-be home buyers try to do this all the time. Sellers want to know that you have the ability to actually purchase their home, which is why preapproval matters. If you don’t have a preapproval, it’s basically no different from asking the barista to trust you, except you’re buying something much more expensive than a $6 cup of coffee. But it’s not enough to go on some website and get a generic, unverified prequalification based on nothing more than what you told the internet. A monkey could do that. If you want sellers to take your offer seriously, you need to get your bank statements, credit scores, and tax returns over to a great lender so they can vouch for you. And not only that, great lenders can guide you and let you know things like your interest rate, down payment, closing costs, loan options, what your monthly payment will be, and what steps you need to take to make your dream of homeownership a reality if you’re not quite there yet. I can’t stress enough how important this is. Not getting preapproved and working with a great lender will not only make it more difficult for you to compete with other buyers, it could cost you a lot of money, especially if you’ve paid for things like home inspections, appraisals, and other moving-related expenses. If you’re in the market to purchase a home and could use expert guidance, I can get you in touch with a great lender and provide you with expert guidance through every aspect of your home purchase for free, since the seller pays all commissions. I’m Eric with Eric Andersen Homes, and I’m here to provide you with a smarter approach to real estate.

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