Loan Pre-Approval Makes All the Difference:
When Buying a Home. You may have been told that it’s important to get pre-approved at the beginning of the homebuying process. 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 clear understanding of your budget. You will stand out to sellers as a serious homebuyer and you want that.
Be Intentional:
Being intentional and competitive are musts when buying a home right now. Loan 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 loan 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.
Limited Inventory:
With limited housing inventory, there are many more buyers active in the market than there are sellers. That’s creating some serious competition. According to the National Association of Realtors (NAR), homes are receiving an average of 5.1 offers for sellers to consider. As a result, bidding wars are more and more common. Loan Pre-approval gives you an advantage if you get into a multiple-offer scenario 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.
Freddie Mac explains:
A loan 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.
Every step you can take to gain an advantage as a buyer is crucial when today’s market is constantly changing. Interest rates are low, 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 agent making sure you take the right steps and can show your qualifications as a buyer when you find a home to purchase.
Bottom Line
In a competitive market with low inventory, a loan pre-approval letter is a game-changing piece of the homebuying process. Not only does being pre-approved bring clarity to your home buying budget, but it shows sellers how serious you are about purchasing a home.
For more on The Power of Mortgage Pre-Approval: https://yourhomerealestatepro.com/the-power-of-mortgage-loan-pre-approval
