Pre-approval is key when buying a home in 2021
In today’s market, we’re seeing a low inventory of homes for sale, and when there are more buyers than sellers in the marketplace, we tend to experience multiple offer situations and bidding wars, and the process may become a little more challenging for buyers. If you’re planning to buy a home this year, getting pre-approved is an important initial step.
The benefits of a pre-approval:
- Pre-approval takes you much further through the application process and puts you in an even better position to buy
- Pre-approval gives you and your lender an accurate understanding of your financial stability and ability to repay the loan
- Pre-approval gets most of the work you have to do in the mortgage process out of the way, which will give you greater peace of mind once you’re ready to make an offer on a house
Mortgage rates are seeing historic lows and now is an excellent time to buy a house if you’re in the market to do so
If you’re starting your home buying journey, talking with a lender is a smart strategy. When you know your available options and confirm your budget, you’ll be able to shop for homes with more confidence and clarity. With the onset of COVID-19 and the subsequent tightening of credit and changing of guidelines, this step is more important than ever. A seller will often want to see a lender letter even before allowing a home to be viewed.
When you know your financials, your real estate broker can present your best offer when you do find a home you’d like to buy, and your down payment and loan structure/terms will be factored into the negotiation process.
Continue reading: Pre-Qualified vs. Pre-Approved | Buying A Home During COVID-19
Home Buying In Central Oregon
Fred Real Estate Group is founded on a fresh approach and local expertise backed by smart technology and business tools and we’re shifting our communication methods to connect with our clients and business partners (lenders, home inspectors, title companies, etc.) during this current virtual climate, and beyond.
If you’re thinking about buying a home this year, we’d love the opportunity to work with you. If you have questions or would like to discuss your home buying goals, we are open for business and we’re ready to assist.
Schedule a free virtual buyer consultation with a Fred Real Estate Group professional: