If you’re planning to buy a home, the most important step is getting pre-approved. Especially in today’s competitive market when mortgage rates are higher than they were just a few months ago, getting a mortgage pre-approval is more important than ever. Here’s why...
What Is Pre-Approval?
To better understand why pre-approval is key, it’s important to know what pre-approval is. Simply put, a mortgage pre-approval is when a lender determines if you’re qualified for a home loan. The pre-approval letter you'll get shows the max loan amount you’re approved for as well as the specific interest rate and loan terms you can expect.
The lender will look at your income, bills, savings and credit score to determine how much of a loan you qualify for. From there, your lender will give you a pre-approval letter to help you understand your true price range and how much money you can borrow. This will make it easier when you start your home search because you’ll know your overall numbers. And with mortgage rates rising and impacting affordability, a solid understanding of your numbers is even more important.
Pre-Approval Can Signal You’re a Serious Buyer
Another added benefit is that pre-approval lets the seller know you’re qualified to buy their house. A recent article from realtor.com notes:
". . . getting pre-approved can actually improve your chances of falling into the sellers’ good graces, and you’ll want to get it done as early as you possibly can in the home-buying process."
Even though bidding wars are easing this year as the market shifts, pre-approval is still an important part of making a strong offer. It can help a seller feel more confident because it shows you’re serious about their home and that you’re a qualified buyer.
The Bottom Line
Getting pre-approved for a mortgage is crucial It helps you better understand what you can borrow and shows sellers you’re serious about purchasing their home. Contact me today at (410) 703-5448 or jkeithsharp26@gmail.com for more information and to get connected with a local lender. If you're ready to find out what you qualify for now, contact Clint Anuszewski with Bay Capital mortgage by clicking here.