First Step, Pre-Approval!
With higher interest rates and home prices predicted to keep increasing, the amount you may be able to afford changes–couple these with the low inventory in the area and suddenly, the competition begins. Luckily, you can have a slight edge over the competition if you are prepared! How do you get prepared? You get pre-approved.
Pre-approvals are critical to understanding your buying power, and the transaction as a whole. A pre-approval is one of the first steps that helps you to navigate the process of your purchase. As a part of this step, a mortgage lender will look into your finances and determine how much of a loan they are able to offer you. They will then present you with your pre-approval, which will state the number they’re willing to lend you. This will help you to narrow in your search to a realistic price, take the time to and show the seller that you are a serious buyer when you go through your potential dream home! The pre-approval shows the seller that you were willing to go through the financial check and lessens the chance that there are going to be issues with financing as the deal progresses.
If you have questions on this, I encourage you to reach out! It is so important that people who are looking for their next home are armed with the knowledge and tools that can help them get to where they want to be.