If you’re planning to buy a home
this year, you might have heard that pre-approval is a necessary step
to take before starting out on your journey. But why is that? And is it
still important in today’s shifting market?
The truth is, getting a pre-approval letter from your lender
is critical, and when it comes to your home search, it can be a game
changer in so many ways.
To better understand why, it’s important to know what pre-approval is. Freddie Mac defines the process like this:
“A pre-approval is an indication from your
lender that they are willing to lend you a certain amount of money to
buy your future home. The lender you work with will
provide you with a pre-approval letter, which is an official document
that states the maximum amount they are willing to lend you, . . .”
Put simply, pre-approval from a lender helps you understand your true price range and how much money you can borrow for your loan.
That can make it easier when you set out to search for homes. And since
you’ll know what you’re approved for, it’ll also help once it’s time to
submit an offer on the home of your dreams.
Another added benefit is that pre-approval lets the seller know
you’re qualified to buy their house. Paul Centopani, Editor for the Mortgage Reports, explains:
“. . . most sellers won’t even consider an offer unless the buyer is pre-approved at the right price point.
Sellers and their agents want to know you’re ready and able to finance
your offer amount. So you’ll want to have your preapproval teed up as
soon as you’re serious about bidding on a home you like.”
Every advantage you can gain as a buyer is crucial in a market that’s constantly changing.
You’re going to need guidance to navigate these waters, so it’s
important to have a team of professionals, such as a real estate advisor
and trusted lender, on your side. They’ll help make sure you’re ready
to put your best foot forward.
Getting pre-approved for a mortgage helps you better understand what
you can borrow and shows sellers you’re serious about purchasing their
home. Connect with a local real estate professional so you have the
tools you need to succeed as a homebuyer in today’s shifting market.
Source: KeepingCurrentMattersPosted by Kodak Hensley on