When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. We’ve all watched House Hunters and facepalmed when they mention, “It’s just a bit outside your budget …. ” (by a mere hundred thousand). A perfect, yet ridiculous example, of why being pre-approved for a home load is such a vital step.
Before the shopping around begins, it’s helpful to know a price range, what you’re comfortable with when it comes to a monthly mortgage payment, and ultimately how much money you can borrow for your loan. Our goal is to find an amazing home that you can afford and you are in love with. Pre-approval from a lender is the best road to get you to where you want to be.
A pre-approval letter shows sellers you’re a qualified buyer. It’s like gaining a super power for home buying — pre-approval 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 (like, toilet paper during the first few months of the pandemic competitive). Homes are receiving an average of 3.7 offers for sellers to negotiate, so bidding wars are heating up. Being pre-approved before you start looking at homes will allow you to strike first, strike hard – no mercy! (#cobrakai ‘d that a bit too much, didn’t I?) When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war and land the home of your dreams.
In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. Today’s housing market is also changing from moment to moment. Interest rates are low, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance, Daniel-san, to navigate these waters, making sure you take the right steps along the way (“wax on, wax off” optional.) If you’re ready to buy this year, let’s connect before you start searching for a home. I’ll bring the bonsai.