One of the first steps in your home search process should be pre-approval. As we all know, less homes are currently available on the market. And this increases competition among buyers. But there are ways to straddle these waters if you’re clever. And one of these ways is to get pre-approved. In this way, you will be able to determine your numbers and set yourself to success.
Why Get Pre-Approved
Lenders use pre-approvals to determine how much money you can afford to spend on a home. Finding out how much you can afford is easier if you get pre-approved for a mortgage. Also, it conveys to sellers your seriousness as a buyer. As Freddie Mac explains, it makes it easier to shop for a home, shows you are a serious buyer, and strengthens your offer.
It is also important to note that a solid grasp of your numbers is even more crucial so you can fully comprehend your options. This is because higher mortgage rates and home prices are currently impacting affordability.
Pre-approval will Help You Stand Out
The truth is, there are more buyers searching for homes than there are listings available. And this imbalance is making it more difficult for buyers to find a home. Therefore, when you submit an offer to buy a home, you might encounter other bidders. However, getting a mortgage pre-approval can make you stand out from other prospective buyers. Getting pre-approved can help you not only narrow down the right price range, but it can also give you an advantage over other buyers.
The Bottom Line
In conclusion, the first step in the home-buying process is to obtain a letter of mortgage pre-approval. Obtaining pre-approval can help create a solid base so that you can shop with assurance. Your chances of obtaining the home of your dreams are better the better prepared you are.
What To Do:
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