Today’s homebuying market continues to be hot, with multiple offers on the table within a few days of listing and with the rise of mortgages rates, becoming a homeowner has become a footrace. One must-have strategy is having a solid preapproval in your pocket before you shop.
Getting a preapproval is essential for your homebuying process, and it’s important to understand how it can make you stand out in a seller’s market.
WHAT IS A PREAPPROVAL?
To get a mortgage loan, you need to be preapproved by a lender, which will require your lender to collect certain documentation, such as bank statements and W2s, to verify your income and determine that you are able to repay the loan. A preapproval can provide the sellers with more confidence of your ability to be approved for the amount in your offer, making them more likely to accept your offer over someone without a preapproval in hand.
WHY IS IT IMPORTANT?
Getting a preapproval from a trusted lender like Envoy Mortgage is a powerful tool for homebuyers and is recommended before you even begin home shopping, allowing you to:
1. Know your Budget
2. Gain Peace of Mind
3. Get Ahead of your Competition
4. Increase Buying Power
5. Expedite your Closing
With a preapproval, your real estate professional will know you’re a serious buyer and understand your budget, helping narrow your home search to homes that are the right match for you. It can save you from the heartache of falling in love with a home you can’t afford, while letting your buying agent know that you’re ready and able to make an offer on a home anytime, anywhere.
For the sellers, a preapproval makes you an attractive buyer as it shows sellers that you are financially capable of purchasing their home, giving them the peace-of-mind that your offer will stand.
Lastly, it expedites the closing process which means smoother, stress-free closings – getting you into your new home that much sooner.
Ultimately, getting preapproved is a smart move if you’re looking to buy a home anytime soon. To get your free preapproval, reach out to one of our loan originators in your area.