In a competitive real estate market, securing pre-approval for a mortgage is crucial. Find out why it’s even more important this year and how it can benefit homebuyers.
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Don’t miss out on your dream home – get pre-approved today and start your home-buying journey with confidence!
Pre-approval is important because it shows lenders that you’ve taken steps to secure financing, which can be critical in a competitive real estate market. Pre-approval also means that lenders have reviewed your pay stubs, tax returns, and bank statements, which gives you more leverage when negotiating price, repairs, or other terms of the sale. Sellers may be more inclined to accommodate your requests knowing that you have already taken the necessary steps to secure financing.
Pre-approval can also help you determine what your budget is and what you’ll be able to borrow. It’s important to fall in love with a home that makes sense financially.
Pre-approval letters are also a golden ticket to house hunting because real estate agents and home sellers will know you’re a serious buyer.
In most cases, pre-approval is valid for around 60–90 days. Your financial situation can change substantially within a few months, and many lenders require you to get pre-approved again if you’ve gone beyond the 90-day mark.
This is for informational purposes only. For financial advice, consult a professional.
With pre-approval, much of the mortgage application process is already completed, expediting the closing process significantly.
In a market where speed can make or break a deal, being pre-approved can help you move swiftly and confidently, increasing your chances of securing the home you desire.