One of the most important things prospective homebuyers can do is to get preapproved for a loan, said Damir Krajina, mortgage loan officer with Midwest BankCentre.
Krajina said getting preapproved offers several advantages, such as helping buyers know how much they can afford to spend on a home. Plus, in today’s competitive real estate market, having preapproval is not just a benefit, it can be a requirement to even be considered when making an offer to buy a home.
“It’s so important now because it’s still extremely competitive in the housing market. If you’re putting an offer in for a house and there are 10 offers and nine of them have preapprovals and you come in with a prequalification, they’re not even going to look at your offer because they don’t take you seriously,” he said.
Krajina said it’s essential to get preapproval before you find the home you want to buy. Often offers must be made quickly, and a dream home could be lost while a buyer is waiting to obtain a preapproval letter.
“In today’s housing market, it’s extremely important to do this ahead of time,” he said. “The market will not wait for you to get preapproval a lot of times.”
Krajina said to get a preapproval letter, buyers should be prepared to provide the same documentation needed to secure a loan, such as tax documentation, income verification, bank statements and a credit check.
Once a buyer has secured a preapproval letter, it’s good for 120 days, he said.
Krajina advises those interested in buying a home to contact a loan specialist at any of Midwest BankCentre’s 17 locations in the St. Louis area. The bank has branches in Arnold, Crystal City, De Soto, Fenton and Imperial. For more information, go to the company’s website at midwestbankcentre.com.