Are you in the market for a large loan-dependent purchase like a new home or a new set of wheels? Don’t forget to get your pre-approval first!
1. You’ll know what you can afford. A pre-approval will tell you exactly how much house or car you can afford, simplifying and quickening your search.
2. You won’t get taken for a ride. When you’re unsure how much you can spend on a car, the dealer may try to sell you one that costs more than you can really handle.
3. You’ll be taken seriously. A car dealer or realtor will take you more seriously when you wave that pre-approval in their face.
4. Secure the rate and financing terms you desire. When you’re making the deal for your purchase, there are bound to be some confusing moments as things come together. Some dealers use this as an opportune time to upsell warranties, insurances and other add-ons. While these things require consideration, it’s too easy to tack the costs onto a loan without considering how it will impact payment and overall cost.
Your Turn: Based on your own experiences, why do you think it’s important to get preapproved for a loan? Share your thoughts with us in the comments!