Why do you need to have financing lined up before looking for a home?
Hey, this is Nathan Lilly with Conner Real Estate here in Jackson, Tennessee. Just want to make a real quick video and why you should have financing lined up or before looking for a home. So it's actually a lot more simple than people think. You know, when you reach out to a realtor and they're like, Hey, do you already have financing lined up or are you already pre-approved? Do you think that they're asking because they just want to get business or some type of ultimate, you know, intention? But the reality of the situation is, so let me let me give you a story. This has been a very hot seller's market over the past two years. I've been working with numerous buyers that have been looking for a long time, and I'm the type of person that if you want to look at a home, I'm not to necessarily concerned if you have financing lined up because the reasoning of looking at a home, you may just be wanting to get familiar with the area, get familiar with home styles, designs, layouts and stuff like that, especially if you're out of state and I'm going to show you a house anyway. Get you familiar with the area. Answer all your questions. But over the last two years, it's been a crazy hot seller's market, and I've worked with several buyers that were serious and didn't have financing lined up, but they had a plan for financing. And it happened multiple times where I show a buyer a home, they really like it. At that point, they go and try to get financing. They like the house, and now they need to get financing to buy the house. And by the time they have financing lined up, they get a pre-approval from their lender. It's a send over to the seller. The seller is reviewing offers, and they're also looking at the pre-approval just to know that this buyer's able to purchase the property. They're not going to take their home off the market for a buyer that is not able to purchase the property. And in this market, your offer probably won't even get reviewed if you don't send over a proof of financing. But long story short, if you're looking at property and you don't have financing lined up, you may miss out on the property that you're looking for. Just like a couple of clients of mine, you know they missed out on the property because by the time they have financing lined up, the property was gone. Because we're in a market where properties are selling really fast, multiple offer situations and stuff like that. So and also, if you have financing lined up first, a good lender is going to match you with the loan type that's going to work best for you. And that loan type may knock out certain properties that won't qualify for that loan. And they're also going to give you a budget or a price range that that may affect your home search as well. So getting financing first is not only going to save you hassle down the road because basically you're postponing the inevitable, but it's also going to give you knowledge of your loan type price, your price point that you can be looking in. Just basically get you more knowledgeable on where we should look and also your agent of what properties they need to be looking for that will match your criteria. So, you know, you get financing lined up first and then you go and find a home that matches your loan type, matches your desires and wants. And then that's that's that's the best way to do it. It's really the only way to do it now. I say it's the only way to do it now. If we if we were in a buyer's market, which right now we're in a very strong seller's market, a buyer's market property sits there a little bit longer. So you have time to kind of sit back and go look at property and maybe get financing lined up and it's still on the market and then you can purchase it. But you have to work with the market in order to accomplish your goals. And understanding the market is the difference in between you accomplishing your goals and not accomplishing your goals. But it's always smart to get financing lined up first. My name's Nathan Lilly. I'm a local realtor here in Jackson, Tennessee. If you need anything at all, feel free to reach out. I'll work seven days a week. My information will be below and have a wonderful day.