The game of chess can provide incredible lessons to apply to all aspects of life, including the home buying process. Chess requires you to plan and think about your strategy from the very beginning of the game.
The home buying process, like chess, requires strategy and planning. Here are a few things to keep in mind to ensure your plan is as strong as possible when you begin your home search.
Pre-Approval: the Best Opening Play To Make as a Homebuyer
It’s important to have a great opening play when you’re buying a home. And the best move you can make when you begin your home search in the Lafayette, LA area is getting pre-approved by a lender. You’ve probably already heard this is an important step, but what exactly is pre-approval and what benefits does it provide you?
As Freddie Mac puts it:
“The pre-approval letter from your lender tells you the maximum amount you are qualified to borrow. Getting a pre-approval letter is not a loan guarantee, it simply states how much your lender is willing to lend you. . . .”
And while determining how much you can afford at the start of your search is critical, the pre-approval letter also serves another important purpose. Freddie Mac also notes:
“This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.”
In the game of chess, a strong opening move signals to your opponent that you’re a serious competitor. As a homebuyer, your pre-approval letter signals to the seller that you’re a serious, interested buyer. Another huge piece to the pre-approval process is the type of loan that you qualify for! For example, being approved for an FHA loan means the home must be in a certain condition for it to pass FHA guidelines. Not every house qualifies for every loan type!
Homebuying: It’s a Team Game, Not a Single-Player Experience – You most likely have a job that you need to focus on right? Family, kids, or just life in general! Allow the experts to do their jobs on your behalf! Create a team of experts that will help you meet your goals and have your best interest in mind! Choosing the right Realtor, Title Company, Inspector, and Lender will all greatly increase your chances of avoiding all the pitfalls that could come up during the home buying process!
Every step you take to create your strategy as a buyer is important in today’s market. Why? Mortgage rates are still low, but increasing. Prices are going up. There’s a limited supply of homes for sale. These are just a few key variables in today’s market you need to be prepared for.
That means leaning on expert guidance as you plan every move is more important than ever. Always keep in mind that buying a home is not like buying a car, you can’t just go trade it in if you don’t like it or it breaks and is out of warranty. Having an experienced set of eyes with you along the way will greatly increase the chances of you having a smooth transaction and being able to enjoy your new home!
Getting a pre-approval letter isn’t just good strategy, it can be game-changing. It allows you to get a full understanding of what you can afford, and it signals to sellers that you’re serious. Let’s connect today to ensure you’re playing chess and being strategic during the home buying process. If you’ve already been pre-approved or have a pretty good idea of what you’d qualify for you can start your home search here!