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Why Is It so Important to Be Pre-Approved in the Homebuying Process?
Dated: August 28 2020
You may have heard that pre-approval is a great in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that is outside your budget is very real. So, before you start shopping around, it is helpful to know your price range, what you’re comfortable within a monthly mortgage payment, and ultimately how much money you can borrow for your loan. Pre-approval from a lender is the only way to do this.
This paperwork (the pre-approval letter) shows sellers you are a qualified buyer, something that can really help you stand out from the crowd in the current ultra-competitive market.
How competitive is today’s market? Extremely – especially among buyers.
With limited , there are many more buyers than sellers right now, and that’s fueling the competition. According to the (NAR), homes are receiving an average of for sellers to negotiate, so are heating up.
Pre-approval shows homeowners you are a serious buyer. It helps you stand out from the crowd if you get into a multiple-offer scenario, and these days, it is likely. When a seller knows you are qualified to buy the home, you are in a better position to potentially win the bidding war and land the home of your dreams.
Danielle Hale for notes:
In addition, today’s housing market is also changing from moment to moment. are low, 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 (a loan officer and a real estate agent) making sure you take the right steps along the way and can show your qualifications as a buyer at the time you find a home to purchase.
In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. If you are ready to buy this year, reach out to The Grimes Group, who can also connect you with a trusted lender before you start searching for a home.
Grimes Realty Admin....
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