Competition for available homes is fierce right now. Home supply is low and buyer demand is high. Buyers are facing serious challenges trying to find a decent house at a price they can afford.
As we head into 2022, one thing you must do to give yourself a leg-up over the buyer competition is to get pre-approved for a mortgage loan.
Watch this short video, then continue reading below…
What is Mortgage Pre-Approval?
Before you begin searching for a home, you need to know two things:
- Can you qualify for a home loan?
- How much can you safely borrow?
By contacting a lender and getting pre-approval, you can be fairly certain that your credit is good and you will have a good idea of your home-buying budget.
Mortgage lenders can do a pre-qualification which is very basic and fast, but today’s buyers will want you to provide a pre-approval letter. A pre-approval is a more in-depth check of your credit and provides more assurance to a buyer that you can actually get a loan. Today’s sellers don’t want to waste time with buyers who may get turned down for a loan after several weeks of waiting. Time is money and sellers know that they can demand buyers who are pre-approved for a loan.
Why Get Pre-Approved for a Mortgage?
There are several advantages to getting pre-approved:
- Save time by searching for properties you can actually afford. If you know you are approved for a $500,000 loan and you plan to put down $100,000 cash as your down payment, you know before you start searching that you should limit your search to homes priced under $600,000. And you may have to lower that amount even more because many homes are selling above list price.
- Sellers will take you seriously. Home sellers are getting multiple bids on their homes in many cases. If you want to be considered as a possible buyer, you need a pre-approval letter. If a seller is faced with multiple offers, they may eliminate all offers from buyers who are not pre-approved.
- Negotiating may be easier. Since you are pre-approved, a seller may be more willing to negotiate with you over other details of the sale, such as the closing date or repairs to the house.
- Final loan approval will be faster. Because you have already provided some of your details to your lender, getting pre-approved can shorten the time it takes to complete the mortgage approval process.
Don’t neglect the important step of getting a loan pre-approval before you begin making offers on homes. You’ll have a much greater chance of getting the house you want and you won’t have to wonder if you can actually afford it.
Ready to buy a house in Atlanta? Great! Contact us today to see if Kurzner Group is a good fit to help you find your dream home. We’ll talk with you and discover what you want and give you a clear picture of how we can help you get the home you are looking for.
