5 Reasons Not to Make an Offer on a House Without Mortgage Pre-Approval

  1. Embarrassment. Making an offer, only to find out you can’t secure the financing is an embarrassing situation. Going to your real estate agent and the seller to tell them you can’t actually afford the house is not a fun conversation.
  2. Frustration. House hunting with no idea on how much house you can afford is a recipe for disaster. You could find all kinds of homes you love in perfect communities, but if they’re out of your price range then all that searching is done in vain.
  3. Focus. Talking to a mortgage consultant along with your real estate agent will help you narrow your focus into neighborhoods right for you and your budget. From property taxes and homeowners insurance to the schools and crime rates, focusing on the best areas for you makes the process run more smoothly.
  4. The first step is the first step. Trying to offer money you don’t have for something you want sets you up for disappointment, frustration and more for yourself, your agent and the seller. Start with step one instead of putting the cart before the horse.
  5. Credit scores. Credit scores vary depending on who’s pulling the report. Your score will differ if you pull it versus if a store pulls it, or when a car dealer looks at it over a mortgage consultant. The credit bureaus report a little differently, and each of the 3 main bureaus will differ from each other. So pulling your own credit, or having it pulled recently for a car loan will not help ensure that you’re in the clear to buy a house. Mortgage pre-approval will help make sure your credit score is mortgage-ready.