In one of the most competitive real estate markets in recent history with the inventory at an all-time low, it's crucial as a buyer to be as competitive as you possibly can from the outset. The most surefire way to increase your chances of success? Get pre-approved for a home loan. Mortgage preapproval means a lender has reviewed your finances, determined how much you're qualified to borrow, and conditionally committed to actually granting you a mortgage - and here's why it's so important.
First, pre-approval is the only true way to know your price range. If you are looking at houses outside of this range, you will lose out to bidders who can afford a higher offer.
Next, with extremely limited housing inventory, buyer competition is at a record high - which is creating an abundance of bidding wars. One of the biggest advantages in a multiple offer situation is being a qualified buyer with pre-approval. As Freddie Mac explains, "By having a pre-approval letter from your lender, you're telling the seller that you're a serious buyer... in a true bidding war, your offer will likely get dropped if you don't already have one".
Pre-approval is key, but having a seasoned real estate professional from Arthur Rue Agency by your side as well to help navigate this historic market is the best way to ensure your dream home doesn't slip away. Contact your local Arthur Rue Agency agent today to get started.
Posted by Angela Silvi on