Getting pre-approved for a mortgage is one of the first steps in the home-buying process. Why? You'll know how much house you can afford, and a pre-approval lets real estate agents know you've got your finances in order.
When it comes to buying a property this year, being strategic and competitive are essential. The only way to discover your exact price range and how much money you can borrow for your loan is to get pre-approval from a lender. In an ultra-competitive market, presenting a pre-approval letter tells sellers you're a qualified buyer, which can help you land your ideal home.
Demand for housing rises as more buyers enter the market. In a low-interest-rate environment, prices may climb even faster if there is still a restricted supply of home inventory.
The housing supply, according to one expert, is constantly changing. When people relocate, inventory may rise—some may be downsizing, others may be trying to create more room for a growing family, and still others may be buying their first house. Similarly, new home construction and development may expand, adding to the existing inventory. The housing market, like all markets, is strongly reliant on supply and demand, which is why it is such a closely watched indicator. Of course, each home transaction involves a buyer and a seller. The buyer makes an offer to purchase a property, which the seller must accept or reject. The equilibrium price of a property is determined by the law of supply and demand. A lack of supply or housing availability can cause prices to rise, resulting in bidding wars - which are very common and having pre-approval provides you an advantage if you end yourself in a multiple-offer situation, which is more typical these days. You're in a stronger position to win the bidding war if the seller believes you're qualified to buy the house.
Benefits to getting pre-approved
• There will be shorter closing periods.
• You can save some more time by doing so.
• You have more power than others as a buyer.
• You have a better negotiation standing.
In conclusion, having real estate agent on your side is important, especially now that we have a competitive market and a lot of people are looking for a house. Here at Ginger Baxter Group, we ensure to help and guide you to complete the proper steps and demonstrate your credentials as a buyer. Keep in mind that being pre-approved not only clarifies your budget but also informs sellers that you are eager about buying.