In the current market, sellers aren't having any trouble offloading homes. In fact, according to the National Association of REALTORS® , the average home took only 29 days to sell during the month of April, which undercut the previous record of 32 days set last May. The inventory is low, and many homes are getting snatched up before most buyers can even schedule a viewing. As a result, many buyers find themselves watching the market continuously for anything they may be able to purchase.
When buyers are easy to come by, sellers have the ability to be more discriminating and demanding. For this reason, it's important for every serious buyer to have a pre-approval in hand before they begin home shopping.
What is a pre-approval?
A pre-approval is a tentative commitment from a lender to provide you with a loan in a certain amount. This commitment is based on information you provide about your credit, income, other debts and employment history. In most cases, the lender will also check your credit report before issuing a preapproval. When the process is complete, the lender will give you a pre-approval letter that you can show to sellers when you are interested in a home.
What are the benefits of having a pre-approval?
Having a pre-approval gives you an edge over other potential buyers. Some of the benefits of a pre-approval include:
- Showing sellers you're a serious buyer. - Sellers don't want to waste their time with buyers who may not be serious about making a purchase. Having a pre-approval shows the seller that you are ready to make a move.
- Putting the seller's mind at ease. - When your offer is accompanied by a pre-approval letter, the seller knows you will most likely be able to secure the financing you need to go through with the deal.
- Knowing what you can afford. - Too many buyers fall in love with a home only to be disappointed when they aren't able to qualify for the loan. Having a pre-approval lets you know exactly which homes you should view.
With sales happening so quickly, it's likely that the home shortage will continue. Before you start shopping, be sure to obtain a pre-approval to make your offer stand out from the rest.
What to get pre-approved today? Click the APPLY NOW button at the top of the page.
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