I have had some out of state buyers ask me the following question. Is it better to get pre-approved for a loan in the state they reside or in the state that they are moving to? It is a good question because each buyer has their own needs and circumstances.
As a REALTOR®️, finance is not my area of expertise. But I do have a great group of people that are excellent resources for me. I asked some trusted experts their opinions on this. Here is what I learned when speaking to various mortgage consultants. Keep in mind, these are their opinions and you should always do your own research.
The competitive market
In the Treasure Valley, we are currently in a seller’s market. Inventory levels are well below 5-7 months. When buyers make an offer on a house, it needs to be strong and timely.
It is a smart play to make sure the offer doesn’t raise any red flags to the seller. Especially if it is a multi-offer situation. You want to give the seller every reason to choose your offer. Pre-approval from a local lender can send the signal that your financing will be straightforward.
First time home buyers
Buyers that are buying their first home have access to special programs. In Idaho, they may have even more options available. Idaho loan officers should have a solid background in the options available to you.
A team approach
It may be obvious that using a local REALTOR®️ is an advantage to knowing the market. But working with a locally based financial expert can also be a benefit. Loan officers have a feel for what homes are appraising for. They can provide feedback on pricing and strategy.
What to do
I know there are a lot of reasons to consider pre-approval in both your current state and soon to be home state. One of the most important considerations is finding a lender that you feel comfortable. Buying a home can be an amazing adventure with lots of ups and downs. Make sure that you are working with a team of people that help you find the best home in the best way.
These are only a few reasons to consider. Let’s keep the conversation going. Feel free to share your thoughts and opinions.