Pre-Approval Is the #1 Most Powerful Move When You’re Buying a Home
Pre-Approval is the #1 most powerful move when buying a home. Connect with Oz Lending to help you put a strategy in place that will make you feel confident in your home search.
Being intentional and competitive are musts when buying a home this season. That’s why pre-approval is so important today. 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. Peter Warden, Editor of The Mortgage Reports, explains:
“The lender will check out your personal finances and issue you a letter confirming the amount you’re eligible to borrow. This not only gives you a firm budget for house hunting, but also lets sellers know you’re qualified to make an offer.”
Why Does it Matter So Much Today?
Why does that matter so much today? There are many more buyers looking for homes today than there are homes available for sale, and that’s creating some serious competition. According to the National Association of Realtors (NAR), the average home is getting 4.8 offers per sale. As a result, bidding wars are still common.
Your pre-approval gives you a leg up in these situations. That’s because you know exactly what you’re approved to borrow before you write your offer, and it lets the seller know you’re qualified to buy their home. This helps both you and the seller feel confident in what you’re bringing to the table. And that puts you in a better position to potentially win a bidding war.
As Warden puts it:
“There’s another important reason to get pre-approved, too. And that’s because there are way more buyers than homes in today’s market — which means you need to be ultra-prepared if you want to win a bidding war. Most sellers are getting multiple offers right now. And most won’t even entertain an offer without a pre-approval letter included.”
Every advantage you can gain as a buyer is crucial in a market that’s constantly changing. Mortgage rates are rising, home 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 advisor, on your side. They’ll help make sure you’re ready to put your best foot forward.
What you need to know
Getting pre-approved for a mortgage helps you better understand what you can afford and signals to sellers you’re serious about purchasing their home. 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.
Connect with an Oz Lending Loan Wizard
Oz Lending has access to the best loan programs available, including Conventional, FHA, VA, Construction, Jumbo, and even Specialty Programs like Bank Statement Programs. By providing more options than the industry standard, our borrowers have more loan options to fit your unique situation, which in turn gets you in the home you deserve!
PLUS, whether it’s for refinancing, buying a new home, building a home, or applying for home equity loans or second mortgages, Oz Lending has a knowledgeable in-house team of professionals that consists of amazing loan officers, underwriters, closers, processors, and loan officer assistants. Our team works around the clock to get your loan done right and fast! Get started with a pre-approval and contact Oz Lending today!