may have heard that it's important to get pre-approved for a mortgage at the beginning of
process, but what does that really mean, and why is it so important?
Especially in today's market, with rising home prices and high buyer competition, it's crucial to have a pre-approval letter
prior to making an offer. Here's why.
Being intentional and competitive are
musts when buying a home this year. Pre-approval from a lender is the only way
to know your true price range and how much money you can borrow for your loan.
Just as important, being able to present a pre-approval letter shows sellers
you're a qualified buyer, something that can really help you land your dream
home in an ultra-competitive market.
With limited housing inventory, there
are many more buyers active in the market than there are sellers, and that's creating some serious
competition. According to the National Association of Realtors (NAR),
homes today are receiving an average of 3.8 offers for sellers to consider. As a result, bidding wars
are still common. Pre-approval gives you an advantage if you get into a multiple-offer scenario, and
these days, it's likely you will. When a seller knows you're qualified to buy the home, you're in a better
position to potentially win the bidding war.
having a pre-approval letter from your lender, you're telling the
seller that you're a serious buyer, and you've been pre-approved for a mortgage
by your lender for a specific dollar amount. In a true bidding war, your offer
will likely get dropped if you don't already have one.
step you can take to gain an advantage as a buyer is crucial when today's
market is constantly changing. Interest rates are rising, prices are going up, and
lending institutions are regularly updating their standards. You're going to
need guidance to navigate these waters, so it's important to have a team of
professionals such as a loan officer and a trusted real estate advisor making
sure you take the right steps and can show your qualifications as a buyer when
you find a home to purchase.
a competitive market with low inventory, a pre-approval letter is a
game-changing piece of the homebuying process. Not only does being pre-approved
bring clarity to your homebuying budget, but it shows sellers how serious you
are about purchasing a home. Contact me at (904) 274-1692 to get started.