When competition among buyers is strong, pre-approval can give you an edge.
Why is it in your best interest to meet with a mortgage lender and discuss pre-approval? One of the biggest reasons is so that you can find out whether you actually qualify for a home loan. Lending guidelines are changing constantly, especially in this era of COVID-19, and you want to make sure that you’re able to get a loan based on your current situation.
Furthermore, you want to understand what your buying power is. Oftentimes, buyers will use online, third-party tools that calculate home payments, and those numbers aren’t always accurate since they don’t factor in the taxes and insurances you’ll be paying on the property each month.
Another reason to get pre-approved is that it allows you to get ahead of the game. Most sellers today are receiving multiple offers on their home, and if you’re pre-approved, you’ll be in a position to make an offer the seller will want to accept; a pre-approval communicates to sellers that you’re a serious buyer who has already done their homework, and whose offer won’t run into financing trouble en route to close.
Those are just some of the main reasons why pre-approval is game-changing for buyers in our market. If you want to know more about pre-approval, have general questions about the real estate market, or would like to see us cover a specific topic, please reach out to us anytime via phone or email. We look forward to hearing from you.
