3 Reasons Why Pre-Approval is the First Step in Your Home-Buying Journey
When the number of buyers in the housing market outnumbers the number of homes for sale, it’s called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a place to call their own. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes– unless they stand out from the crowd. Here are three reasons why pre-approval should be your first step in the homebuying process.
1. Gain a Competitive Advantage
Low inventory, like we have today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it shows the sellers you’re serious about buying a home, which is always a plus in your corner.
2. Accelerate the Homebuying Process
Pre-approval can also speed up the homebuying process, so you can move faster when you’re ready to make an offer. In a competitive arena like we have today, being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams.
3. Know What You Can Borrow and Afford
Here’s the other thing: if you’re pre-approved, you also have a better sense of your budget, what you can afford, and ultimately how much you’re eligible to borrow for your mortgage. This way, you’re less apt to fall in love with a home that may be out of your reach.
Freddie Mac sets out the advantages of pre-approval in the My Home section of their website:
“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”
Partnering with a trusted Loan Officer will be the key! Once you select a lender, you’ll need to fill out a loan application and provide important information regarding your credit, debt, work history, down payment and residential history.
By partnering with Inhabit East Bay, you'll not only receive the best real estate adviser, you'll also have a significantly higher chance of getting an offer accepted when you use us for your loan! By taking advantage of our lender relationships, we can put in your offers that the time for you loan contingency removal is significantly shorter than more, or even remove your loan contingency up front! This makes your offer more appealing to sellers and it’s your chance to gain the competitive edge you may need if you’re serious about owning a home. While there are still many additional steps you’ll need to take in the homebuying process, it’s clear why pre-approval is always the best place to begin.
Are you ready to get pre-approved or want to learn more about what you need to receive pre-approval? Reach out to us; we look forward to working with you!