{"id":6204,"date":"2020-08-27T10:00:32","date_gmt":"2020-08-27T10:00:32","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=6204"},"modified":"2020-08-27T10:00:32","modified_gmt":"2020-08-27T10:00:32","slug":"why-is-it-so-important-to-be-pre-approved-in-the-homebuying-process","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=6204","title":{"rendered":"Why Is It so Important to Be Pre-Approved in the Homebuying Process?"},"content":{"rendered":"
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\"Why<\/p>\n

You may have heard that pre-approval is a great first step<\/a> in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. So, before you start shopping around, it’s helpful to know your price range, what you’re comfortable within a monthly mortgage payment, and ultimately how much money you can borrow for your loan. Pre-approval from a lender is the only way to do this.<\/span><\/p>\n

According to a recent survey<\/a> from realtor.com,<\/em> many buyers are making the mistake of skipping the pre-approval step in the homebuying process:<\/p>\n

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“Of over 2,000 active home shoppers who plan to purchase a home in the next 12 months, only 52% obtained a pre-approval letter before beginning their home search<\/strong>, which means nearly half of home buyers are missing this crucial piece of paperwork.<\/strong>”<\/em><\/p>\n<\/blockquote>\n

This paperwork (the pre-approval letter) shows sellers you’re a qualified buyer, something that can really help you stand out from the crowd in the current ultra-competitive market.<\/p>\n

How competitive is today’s market? Extremely – especially among buyers.<\/p>\n

With limited inventory<\/a>, there are many more buyers than sellers right now, and that’s fueling the competition. According to the National Association of Realtors<\/em> (NAR), homes are receiving an average of 2.9 offers<\/a> for sellers to negotiate, so bidding wars<\/a> are heating up.<\/p>\n

Pre-approval shows homeowners you’re a serious buyer. It helps you stand out from the crowd if you get into a multiple-offer scenario, and these days, it’s likely. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war and land the home of your dreams.<\/p>\n

Danielle Hale, Chief Economist<\/em> for realtor.com<\/em> notes:<\/p>\n

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“For ‘a buyer in a competitive market, it’s typically essential to have pre-approval done<\/strong> in order to submit an offer, so getting it done before you even look at homes is a smart move that will enable a buyer to move fast to put an offer in on the right home.’”<\/em><\/p>\n<\/blockquote>\n

In addition, today’s housing market is also changing from moment to moment. Interest rates<\/a> are low, prices<\/a> are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals (a loan officer and a real estate agent) making sure you take the right steps along the way and can show your qualifications as a buyer at the time you find a home to purchase.<\/p>\n

Bottom Line<\/strong><\/h3>\n

In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. If you’re ready to buy this year, let’s connect before you start searching for a home.<\/p>\n

Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\"WhyYou may have heard that pre-approval is a great first step in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. So, before you start shopping around, it’s helpful to know your price range, […]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,88,84,89],"tags":[],"class_list":["post-6204","post","type-post","status-publish","format-standard","hentry","category-blog","category-first-time-home-buyers","category-for-buyers","category-move-up-buyers"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/6204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6204"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/6204\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}