Three Reasons Why Pre-Approval Is the First Step in the 2020 Homebuying Journey

Dated: 02/11/2020

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Three Reasons Why Pre-Approval Is the First Step in the 2020 Homebuying Journey

When the number of buyers in the housing market outnumbers the number of homes for sale, it’s called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a place to call their own. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes – unless they stand out from the crowd. Here are three reasons why pre-approval should be your first step in the homebuying process. 1. Gain a Competitive Advantage Low inventory, like we have today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it shows the sellers you’re serious about buying a home, which is always a plus in your corner. 2. Accelerate the Homebuying Process Pre-approval can also speed up the homebuying process, so you can move faster when you’re ready to make an offer. In a competitive arena like we have today, being ready to put your best foot forward when the time comes maybe the leg-up you need to cross the finish line first and land the home of your dreams. 3. Know What You Can Borrow and Afford Here’s the other thing: if you’re pre-approved, you also have a better sense of your budget, what you can afford, and ultimately how much you’re eligible to borrow for your mortgage. This way, you’re less apt to fall in love with a home that may be out of your reach. Freddie Mac sets out the advantages of pre-approval in the My Home section of their website: “It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

As a former Mortgage Broker, I have a few of the top Lender Business Partners I can refer out to you. Just DM me, call or text me at 760.822.8734. Mike Brown - Broker

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Mike Brown

BROKER / OWNER / REALTOR (16 years experience) Specialties: Buyer's Agent, Listing Agent, Relocation, Short-Sale I am the Owner and Broker of South Coast Exclusive Properties & South Coast Luxury Hom....

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