- Pre-approval is one of the most important steps of the home-buying process, especially when determining your budget.
- In a super competitive sellers’ market where bidding wars are the norm, pre-approval will make you stand out among other buyers.
- A pre-approval letter is a game-changer when buying a home—contact Linda & Craft Team today to see what type of mortgage loan best suits your needs.
What Does It Mean to Get Pre-Approved?
As a prospective homebuyer, you’ve probably been told how important it is to get pre-approved at the beginning of the home-buying process—but do you really know what that means? Getting pre-approved means that a lender has checked your credit and authorized you to obtain a specific loan amount via an approval letter.
Here’s why getting pre-approved is so important
Getting pre-approved for a home loan does two things—helps you set your home-buying budget and shows sellers you’re a qualified buyer. In the competitive setting of today’s sellers’ market, with rising home prices and high buyer demand in the backdrop, it’s vital that you have an in-depth understanding of your budget. Pre-approval from a lender allows you to determine your true price range and how much you can actually afford to borrow for your loan.
Going, going, gone to the buyer with the pre-approval letter…
Being intentional throughout the home-buying process is a must in today’s ultra-competitive market, one in which there are substantially more buyers active than there are sellers. According to the National Association of Realtors, sellers are receiving an average of 5.1 offers on their homes, which often results in intense bidding wars. In a multiple-offer scenario, having a pre-approval letter in hand puts you in a better position to win the bidding war. Ultimately, a pre-approval letter is the extra peace of mind that sellers need to know that you have the financial means to purchase their home.
Get a Leg-Up with Linda Craft & Team
In today’s tooth-and-nail real estate market, it’s crucial to take advantage of any benefit you can as a homebuyer—which begins with finding a trusted team of real estate professionals. Here at Linda Craft & Team, we have a clear understanding of the Triangle’s housing market and want to help you strike while the iron’s hot! Use our free mortgage pre-qualification tool to determine how much home you can purchase, and give us a call at (919) 235-0007 with any other home-buying questions you may have!