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  • Writer's pictureKaci Gebora

Why Pre-Approval Is an Important Step for Today’s Homebuyers?

When purchasing a property during this time of year, it is important to be intentional and competitive. Preapproval is necessary in today's world for this same reason. Your exact price range and the amount of money you are eligible to borrow for your loan cannot be determined without first receiving preapproval from a lender. Why is it still such a big deal in this day and age? The current housing market is marked by intense rivalry as significantly more people are looking for homes to purchase than those available. The National Association of Realtors reports that the typical house receives 4.8 bids prior to being sold. As a direct consequence of this, competitive bidding is still rather typical.

In the circumstances like this, the fact that you already have preapproval offers you an advantage. This is because, before you write your offer, you find out exactly how much you are approved to borrow from the lender, and it also helps the seller know that you are qualified to buy their house. This allows the seller and you to feel more confident in what you bring to the negotiation table. Because of this, you are in a significantly stronger position to emerge victorious from a competitive auction. The Editor of The Mortgage Reports, Peter Warden, explains it this way: "There's another important reason to get preapproved, too. In today's market, there are more buyers than homes available, which means that you need to be extremely well-prepared if you want to emerge victorious from a competitive bidding situation. The vast majority of sellers are currently fielding several offers. And the majority of them won't even consider an offer if it doesn't come with a preapproval letter."

In a constantly shifting market, taking advantage of any competitive advantage is important. The interest rates on mortgages are increasing, the prices of homes are rising, and lending organizations are constantly revising the criteria they use. Please send me a direct message so I can provide you with the resources you require to succeed as a homebuyer in today's market.

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