Pre-approval is a powerful tool

The housing market today can be a challenge for those looking to buy a home in the spring. It’s important to know your budget for home buying, especially with so few houses on the market and higher mortgage rates. You’ll need to be determined to find the perfect house and to act quickly when it comes time to make an offer. Pre-approval can help you prepare. To understand why this is such an important step you must first know what it is. A lender will look at your finances as part of the pre-approval process to determine how much they are willing to lend you. Your lender will then give you a letter of pre-approval to help you determine how much you can borrow. . . . Remember that the maximum loan amount offered by the lender is stated in the preapproval letter. Pre-approval will give you important information about the homebuying experience. It will help you better understand your options and how much you might be able to afford. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.Pre-Approval Helps Show You’re a Serious BuyerThat’s not the only thing pre-approval can do. It can also make a seller more confident about your offer, as it shows that you are serious about buying the house. Preapproval is a good first step if you plan to use a loan for your home purchase. According to a recent Wall Street Journal article: “If you plan on using a mortgage, preapproval should also be a part of your search process.” Preapproval can help you find the right price range and give you an edge over other buyers. It shows you are serious and lets you know how much you can borrow. Connect with a local realtor and a trusted mortgage lender to get the tools you need for today’s market.

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