When it gets to the point where there are more home buyers than homes on the market, the housing market is known as a “seller’s market.” Sellers gain more advantages in the process as buyers become more competitive when searching for a new home. In turn, buyers may have a more difficult time landing that purchase unless they can somehow stand apart from the other buyers, in which case pre-approval can be of great assistance.
There are a few main reasons why getting pre-approved is so important when buying a home.
Gain the Upper Hand Over Other Buyers
When the inventory in the housing market is low, homebuyers will become more competitive when trying to find the perfect home. A homeowner who is pre-approved for a mortgage prior to making an offer will have a much greater chance of closing the deal than others, which is due to the fact that pre-approval shows how committed you are to buying the home. Pre-approved buyers appeal to sellers more than others because they’re more likely to be able to cover the costs of homeownership in the long run.
Make the Buying Process Quicker
Pre-approval is also a great way to make the home buying process move a little faster, allowing you to close the deal as soon as you’re prepared to make an offer on the home. If you’re pre-approved, you’ll be able to secure a deal much faster than other buyers who fall behind, enabling you to move into your dream home much sooner.
Have a Better Understanding of Your Financial Situation
Another advantage you’ll find with pre-approval is the ability to understand precisely where you’re at from a financial standpoint. During the pre-approval process, you can learn exactly how much you can borrow and what you can actually afford. Learning more about your finances can help you make better buying decisions, which can subsequently help you avoid making a luxurious purchase that you might regret later on after the initial buy.
To help make sure you know how much you can afford and better gauge your financial situation, you should consult with a reputable real estate professional and a lender who can guide you through the process from start to finish.
When selecting a lender to work with for pre-approval, you will need to provide information regarding various aspects of your finances, including credit history, employment history, and homeowner history.
Working with a team of reputable and experienced professionals can help you determine where you stand as a buyer and remain realistic throughout the buying process. You will likely need the assistance if you’re inexperienced with buying a home and don’t know how to navigate the process.
Get Pre-Approved to Get a Head Start in the Buying Journey
If you want to stay ahead of the competition when buying a home, particularly when more buyers are scrambling to find the ideal home, you’ll be able to get one foot solidly through the door if you get pre-approved beforehand. Connect with a dependable real estate professional to get started with the pre-approval process and be on your way to securing your dream home.
Founded in 1915, the Weidel family of companies has grown to encompass all parts of the residential and commercial real estate markets, including brokerage through Weidel Real Estate, real estate mortgages and finance through Princeton Mortgage Corporation, title insurance through Princeton Assurance Corporation, and real estate education and licensing through the Princeton School of Real Estate.