Getting preapproved from a mortgage lender is a process people go through when they are ready to buy a house. This process does not guarantee you can get a loan, but it does guarantee that you meet the criteria for a loan right now. If you want to buy a house, you should go to a mortgage lender first to get preapproved. Here are three good reasons you should get preapproved before you begin shopping for a home.

You Might Have Trouble Finding an Agent That Will Agree to Help You

You might not realize this, but real estate agents typically only show homes to people who are preapproved. Agents do not get paid to show houses; they get paid to sell and close on homes. If they show a house to someone who cannot get a loan, the deal will never go through, and they will never earn any money.

Because of this, most agents will ask buyers if they are preapproved. They may even ask to prove that you are, and you can do this by giving them the letter the bank sent you. Without a preapproval letter, you might experience trouble finding an agent who is willing to show you homes.

You Won't Know What Price Range to Stick With

The preapproval letter from the bank will also state the amount of money you are preapproved to borrow. This amount is very important because it helps you determine what price range to stick with when shopping for a home to buy. Without knowing this, you could end up looking at homes that are too far over your budget.

You Can Avoid Wasting People's Time If You End Up Ineligible

One other thing to think about is that if you look at homes and make an offer on one, what happens when you cannot get approved for a loan? This is something that could waste the seller's time, especially if they accept your offer and are patiently waiting for you to obtain financing. It is always better to get preapproved instead of wasting time for others.

If you want to buy a house, you should visit a mortgage lender first. Getting preapproved is an important first step to take, and it can help you determine if you are ready and eligible to get a loan for a house. If you are already preapproved, contact a real estate agent to help you find the right home to buy.