The Importance of a Pre-approval

    The house hunt continues! We are now pre-approved for a loan and we have begun to view some homes. I’ve been so anxious to get out and view homes that at first I was a little disappointed when I was told I needed to have a pre-approval before I can view ANY. Is that the law?? No. But I quickly realized the importance of that rule.

    1. To Protect the Buyer

    Purchasing a home, especially if it’s your first, can be a very emotional process. The excitement is overwhelming and even my fiance can attest that I tend go overboard when I get excited about something. The conversation of buying a home started last year, so naturally that same day I was on searching for my dream home. Now you can imagine my surprise when we got our pre-approval back from the lender and we weren’t approved for the $400,000 homes that I have been “favoriting” on our site. NOW I understood why ALANTE Realtors don’t take out buyers without pre-approvals.

    Disappointment. At the end of the day, after your Realtor has taken you out to see numerous homes, disappointment will absolutely kick in once you find out those homes you’ve been viewing are not even in your loan range. As first time homebuyers, our expectations are high, and it’s important to stay realistic and grounded.

    2. To Protect the Realtor

    Realtors are not compensated until the very end of the transaction. With that said, all of their time and energy to help buyers find the right home is extremely important to them. There is a difference between Showing Agents and Realtors that take their time and their client’s time very seriously. In order for Realtors to do their job best and give undivided attention and energy to their clients, they must differentiate those buyers that are serious, motivated and ready to go from those that are not. A pre-approval tells them just that.¬†With that pre-approval, Realtors can narrow down your search, making your weekends viewing homes more efficient.

    3. To Protect the Seller

    Selling your home is 1 million times more emotional than buying a home. Imagine the excitement after your Realtor tells you a showing has been requested for this weekend. YES! A POTENTIAL BUYER! Now comes the stressful part – make sure your home is spotless. And not just a “the in-laws are coming this weekend” kind-of-clean, I mean “Pottery Barn Catalog” clean. Find another home for the dog for that afternoon. Pack up the kids and entertain them for a couple of hours outside of your house. ….A lot goes into selling a home that you might not think of right away.

    Now picture the family comes back home after a whirlwind of an afternoon, calls their Realtor to see if they heard how the showing went, only to find out that buyer that is not even close to being pre-approved for their home. Disappointment sets in once again, along with a few other words the seller is sharing with their Realtor over the phone.


    Moral of the story… call a lender! Find out what your pre-approved for. It’s absolutely okay to save those favorite homes while you search, but before you go out to view homes, know what you should be looking for.




    For more financial information or to apply for a loan, reach out to Anne! Anne Borghesani is ALANTE’s financial expert and is always readily available.

    23194_photoAnne Borghesani, Branch Manager
    First Home Mortgage
    99 Derby Street, Suite 103
    Hingham, MA 02043
    Mobile: (774) 240-9200
    Office: (781) 875-3150

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