{"id":7682,"date":"2022-01-24T11:00:43","date_gmt":"2022-01-24T11:00:43","guid":{"rendered":"https:\/\/thezakariagroup.com\/why-pre-approval-is-key-for-homebuyers-in-2022\/"},"modified":"2022-01-24T11:00:43","modified_gmt":"2022-01-24T11:00:43","slug":"why-pre-approval-is-key-for-homebuyers-in-2022","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/why-pre-approval-is-key-for-homebuyers-in-2022\/","title":{"rendered":"Why Pre-Approval Is Key for Homebuyers in 2022"},"content":{"rendered":"
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You may have heard that it\u2019s important to get\u00a0pre-approved<\/a>\u00a0for a mortgage at the beginning of the\u00a0homebuying\u00a0process<\/a>, but what does that really mean, and why is it so important? Especially in today\u2019s\u00a0market, with rising home prices<\/a> and high buyer competition<\/a>, it\u2019s crucial to have a pre-approval letter prior to making an offer. Here\u2019s why.<\/span><\/p>\n Being intentional and competitive are musts when buying a home this year. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you\u2019re a qualified buyer, something that can really help you land your dream home in an ultra-competitive market.<\/p>\n With limited housing inventory, there are many more buyers active in the market than there are sellers, and that\u2019s creating some serious competition. According to the\u00a0National Association of Realtors<\/em>\u00a0(NAR), homes today are receiving an average of\u00a03.8 offers<\/a>\u00a0for sellers to consider. As a result, bidding wars are still common. Pre-approval gives you an advantage<\/a> if you get into a multiple-offer scenario, and these days, it\u2019s likely you will. When a seller knows you\u2019re qualified to buy the home, you\u2019re in a better position to potentially win the bidding war.<\/p>\n Freddie Mac<\/em>\u00a0explains<\/a>:<\/p>\n \u201cBy having\u00a0a\u00a0<\/em>pre-approval letter<\/em><\/a> from your lender, you\u2019re telling the seller that you\u2019re a serious buyer, and you\u2019ve been pre-approved for a mortgage by your lender for a specific dollar amount. In a true bidding war, your offer will likely get dropped if you don\u2019t already have one.\u201d Every step you can take to gain an advantage as a buyer is crucial when today\u2019s market is constantly\u00a0changing<\/a>. Interest rates are rising, prices are going up, and lending institutions are regularly updating their standards. You\u2019re going to need guidance to navigate these waters, so it\u2019s important to have a team of professionals such as a loan officer and a trusted real estate advisor making sure you take the right steps and can show your qualifications as a buyer when you find a home to purchase.<\/p>\n In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. Not only does being pre-approved bring clarity to your homebuying budget, but it shows sellers how serious you are about purchasing a home.<\/p>\n<\/div>\n\n
\n<\/em><\/p>\n<\/blockquote>\nBottom Line<\/strong><\/h3>\n