You may have heard that preapproval is a great first step in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. So, before you start shopping around, it’s helpful to know your price range, what you’re comfortable within a monthly mortgage payment, and ultimately how much money you can borrow for your loan. A preapproval from a lender is the only way to do this.
How competitive is today’s market? Extremely – especially among buyers. With limited inventory, there are many more buyers than sellers right now, and that’s fueling the competition. According to our National Association of Realtors, homes are receiving an average of 3 offers for sellers to negotiate, so bidding wars are heating up. All the more reason to have this step done early, and to be working with a very experienced agent!
In a competitive market with low inventory, a preapproval letter is a game-changing piece of the home buying process. If you’re ready to buy this year, reach out to us now so we can put you in touch with one of trusted lenders!