If you’ve been searching the market for your next home, you’ve probably realized that the current inventory is limited. The housing market is competitive for buyers, making finding a home that matches your vision even more challenging. According to the National Association of REALTORS®, homes only remain on the market for 18 days on average, meaning buyers may feel pressured to act fast. Competition is indeed high, and you can view homes if you don’t have a pre-approval letter. However, make sure that your financing is in order by getting pre-approved before you start your search. The Jana Caudill Team explains the benefits of having your mortgage approved before you shop for your next home.
Is It Possible to Look At Homes Without a Pre-Approval?
Buyers can view homes even if their mortgage hasn’t been pre-approved. That being said, it’s best to avoid doing so if you are serious about purchasing a home. Plan on talking to your lender to decide on a budget and the monthly mortgage payments. Not only does a pre-approval letter make your house search easier, but it also shows sellers that you are dependable.
Benefits of Pre-Approving a Mortgage Upfront
Getting your mortgage pre-approved is beneficial for several reasons:
- Makes the Process More Efficient. Getting a mortgage takes time. A pre-approval can streamline the process, so it takes less time to proceed with the mortgage after finding a home you want to buy. Plus, some real estate agents refuse to show a home to buyers who do not have a pre-approval letter on hand. By completing this step in advance, you can be prepared to pursue an offer for a house that matches your wish list.
- Feel Confident In Your Offer. A pre-approval tells you whether you would be able to pay for the monthly mortgage payments. When you’re thinking of placing an offer on a home, having this knowledge in mind means you won’t need to guess what you can or cannot afford. As a result, you can hone in on the houses you can truly purchase and avoid wasting time.
- Demonstrate That You Are a Low-Risk Buyer. Getting your mortgage pre-approved before starting the house hunt process gives you more than just confidence. You can rest assured knowing that you are qualified to purchase a home, meaning sellers will be more comfortable when working with you. They know their offer has a higher chance of acceptance than falling through. Given the current seller’s market, some sellers may choose not to spend time with buyers who do not have a pre-approval.
Ultimately, a pre-approval is more favorable to a buyer because it gives you credibility in your home search. Our agents at The Jana Caudill Team are confident that we can help you secure a positive outcome.
Buying a home is a big decision, and you want the process to be as stress-free as possible. Given the benefits of a pre-approval, it’s time to make your move. Contact our Real Estate Agent today to begin your home search!