Thanks to Laurie Flood, a Northwest Austin Realtor, for sharing some of this information.Some homeowners have received texts and calls from individuals offering to purchase their homes. Is
Pre Approval Makes All The Difference When Buying A Home
Dated: June 28 2021
Pre-Approval Makes All the Difference When Buying a Home
You may have been told that it’s important to get pre-approved at the beginning of the homebuying process, but what does that really mean, and why is it so important? Especially in today’s market, with rising home prices and high buyer competition, it’s crucial to have a clear understanding of your budget so you stand out to sellers as a serious homebuyer.
Being intentional and competitive are musts when buying a home right now. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you’re a qualified buyer, something that can really help you land your dream home in an ultra-competitive market.
With limited housing inventory, there are many more buyers active in the market than there are sellers, and that’s creating some serious competition. According to the National Association of Realtors (NAR), homes are receiving an average of 5.1 offers for sellers to consider. As a result, bidding wars are more and more common. Pre-approval gives you an advantage if you get into a multiple-offer scenario, and these days, it’s likely you will. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war.
Freddie Mac explains:
“By having a pre-approval letter from your lender, you're telling the seller that you're a serious buyer, and you've been pre-approved for a mortgage by your lender for a specific dollar amount. In a true bidding war, your offer will likely get dropped if you don't already have one.”
Every step you can take to gain an advantage as a buyer is crucial when today’s market is constantly changing. Interest rates are low, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals such as a loan officer and a trusted real estate agent making sure you take the right steps and can show your qualifications as a buyer when you find a home to purchase.
In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. Not only does being pre-approved bring clarity to your homebuying budget, but it shows sellers how serious you are about purchasing a home.
I wanted to get the names and the contact information to you for several good folks in the mortgage loan business in our area. All are capable and caring people, so I am listing in alphabetical order by their company names. Whoever of these you contact, you can be confident that they will be professional and helpful.
[Remember that getting your financing secured early in the process of buying a new home or property is VERY significant, even essential! Doing so will tell you what amount you will be able to borrow and establish a price range for your search. It will also give you a good idea of what your monthly note will be. Most importantly, when you are pre-approved for your loan, your offer on your dream home or property will be much more credible to the seller. An offer accompanied by a pre-approval letter is second in impact only to a cash offer!]
Clarence Blumrich, A-1 Mortage firstname.lastname@example.org
40251 LA Hwy 42, Prairieville 225 622-7842 https://www.facebook.com/aplusmortgageservice
Jason Vick, GMFS Lending email@example.com
37283 Swamp Rd. | Suite 1002 | Prairieville, LA 70769 Office: (225) 218-5423
Shannon Babin, NOLA Lending Group firstname.lastname@example.org
9247 Bluebonnet Boulevard, Suite A Baton Rouge, LA 225 291-2100 x204, Cell 225 202-7834
Lydia Gibson (bilingual, English Spanish), U.S. Mortgage email@example.com
3300 W. Esplanade Ave, Suite 120, Metairie 504 867-6737 504 430-6170 (mobile)
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