When the real estate market is experiencing low supply with high demand, being intentional as a home buyer is incredibly important. As a buyer, there are multiple reasons why pre-approval can help you move forward in the home buying process. Essentially, being pre-approved means that a lender has examined your finances and determined how much home you can afford. This also lets your real estate agent know that your finances are lined up, and you are ready to purchase your home.
The Benefits to being Pre-Approved
1. Bargaining Power
It is quite common in today's market for there to be multiple offers on a listing. Being pre-approved lets sellers and their agent know that you are a serious buyer and are qualified to purchase their home.
2. Confidence in Offers
A pre-approval will help you know the maximum price you can spend on a home, and it will also help you know whether you will be able to afford the monthly payments. This will give you confidence as a buyer and provide you with the ability to make an informed offer.
3. Saved Time
Pre-approval lets you know your exact price range before you look at a home or enter into negotiations. Ultimately, this can save you time by allowing you to search for homes at your exact price point. Since much of your financial information is already collected during a pre-approval, your closing could also happen sooner which will save you time.
If you're a serious home buyer, then a pre-approval is an important step that you should seriously consider taking. At HomeLink Realty, our REALTORS® are happy to assist you throughout the entire real estate process including helping you navigate a pre-approval.
Posted by Carrie King on
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