Pre-approval is the first step
You need to be aware of a few important things if you are looking to purchase a home in the fall. With rising home prices and mortgage rates, affordability is a concern. There are fewer homes on the market, which creates some competition between buyers. If you are strategic, you can navigate this water. You’ll first want to get pre-approved for your mortgage. What Pre-Approval Can Do for YouTo know why pre-approval can be so important, you must first understand what it is. A lender will look at your finances as part of the homebuying procedure to determine how much they are willing to lend you. Your lender will then give you a letter of pre-approval to let you know how much you can borrow. Freddie Mac explains: “A pre-approval from your lender is an indication that they are willing and able to lend you a specific amount of money for your future home. . . . Remember that the maximum loan amount offered by the lender is shown in the preapproval letter. You should only borrow the amount that you feel comfortable repaying. Why is this helpful, especially now? Pre-Approval Shows Sellers That You’re SeriousAs we all know, there are many more buyers than homes for sale. This imbalance creates some competition among buyers. You may find yourself in a situation where you are competing with other buyers when you submit an offer. Preapproval can give you an edge over other buyers. According to a Wall Street Journal article: “If you plan to use a loan for your home purchase then preapproval is one of the first steps you should take in your search.” Preapproval can help you find the right price range and give you an edge over other buyers. The more prepared and informed you are, you will have a better chance of getting the house you want. Connect with a trusted mortgage lender to get the tools you need for today’s market.
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