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The Yankee Express

The Power of Pre-Approval

Mark Marzeott

If you’re buying a home this spring, today’s housing market can feel like a challenge. With so few homes on the market right now, plus higher mortgage rates, it’s essential to have a firm grasp on your home buying budget. You’ll also need a sense of determination to find the right house and act quickly when you go to put in an offer. One thing you can do to help you prepare is to get pre-approved.
To understand why it’s such an important step, you need to know what pre-approval is. As part of the process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. Marzeotti Group can provide a referral with great lenders. Give us a call today!
Essentially, a pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home.  Keep in mind that the loan amount in the pre-approval letter is typically the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.
Basically, pre-approval gives you critical information about the home buying process that will help you understand how much you may be able to borrow so you have a better understanding of your options. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.
Pre-Approval helps show you’re a serious buyer and most times is required to even get in to see a home for sale.
That’s not the only thing pre-approval can do. Another added benefit is it can help a seller feel more confident in your offer because it shows you’re serious about buying their house. And, with sellers seeing a slight increase in the number of offers again this spring, making a strong offer when you find the perfect house is key.
Getting pre-approved is an important first step when you’re buying a home. It lets you know what you can borrow for your loan and shows sellers you’re serious. Contact The Marzeotti Group or with a local Realtor and a trusted lender so you have the tools you need to purchase a home in today’s market.