If you need assistance, please call 630-276-7575

Why Pre-Approval Is an Important Step for Today’s Homebuyers

Tuesday, April 19, 2022   /   by Teresa Ryan

Why Pre-Approval Is an Important Step for Today’s Homebuyers

Being intentional and competitive are musts when buying a home this season. That’s why pre-approval is so important today. 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. Peter Warden, Editor of The Mortgage Reportsexplains:

“The lender will check out your personal finances and issue you a letter confirming the amount you’re eligible to borrow. This not only gives you a firm budget for house hunting, but also lets sellers know you’re qualified to make an offer.”


Why does that matter so much today? There are many more buyers looking for homes today than there are homes available for sale, and that’s creating some serious competition. According to the National Association of Realtors (NAR), the average home is getting 4.8 offers per sale. As a result, bidding wars are still common.


Your pre-approval gives you a leg up in these situations. That’s because you know exactly what you’re approved to borrow before you write your offer, and it lets the seller know you’re qualified to buy their home. This helps both you and the seller feel confident in what you’re bringing to the table. And that puts you in a better position to potentially win a bidding war.


As Warden puts it:

“There’s another important reason to get preapproved, too. And that’s because there are way more buyers than homes in today’s market — which means you need to be ultra-prepared if you want to win a bidding war. Most sellers are getting multiple offers right now. And most won’t even entertain an offer without a preapproval letter included.”


Every advantage you can gain as a buyer is crucial in a market that’s constantly changing. Mortgage rates are rising, home prices 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, such as a loan officer and a trusted real estate advisor, on your side. They’ll help make sure you’re ready to put your best foot forward.


Bottom Line

Getting pre-approved for a mortgage helps you better understand what you can afford and signals to sellers you’re serious about purchasing their home. Let’s connect so you have the tools you need to succeed as a homebuyer in today’s market.


Call Teresa Ryan at 630-718-0424 today, for your home buying and selling needs in Naperville and the Western Suburbs of Chicago. For inquiries, please call 630-276-7575.

Subscribe to our YouTube Channel for real estate insights, updates, and news!
https://bit.ly/RHG-Youtube

Join us on social:
Facebook: https://www.facebook.com/RyanHillGroup/
Twitter: https://twitter.com/ryanhillgroup
Instagram: https://www.instagram.com/ryanhillgroup/


  naperville il, teresa ryan, century 21 affiliated naperville, ryan hill group, homebuyer, homebuying tips, home buying tips, first time homebuyer, buy a house

Ryan Hill Group - Century 21 Affiliated
Teresa Ryan
1288 Rickert Dr, Ste 300
Naperville, IL 60540
630-276-7575
630-718-0424

The data relating to real estate for sale on this website comes in part from the Broker Reciprocity program of Midwest Real Estate Data LLC. Real Estate listings held by brokerage firms other than Teresa Ryan - Ryan Hill Group - Century 21 Affiliated are marked with the Broker Reciprocity logo or the Broker Reciprocity thumbnail logo (a little black house) and detailed information about them includes the names of the listing brokers. Some properties which appear for sale on this website may subsequently have sold and may no longer be available. The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. © Many homes contain recording devices, and buyers should be aware they may be recorded during a showing. Copyright © 2022 Midwest Real Estate Data LLC Information deemed reliable but not guaranteed. Properties marked with the MRED icon are provided courtesy of Midwest Real Estate Data, LLC. Broker Reciprocity. Use of this site constitutes agreement to the terms and conditions. DMCA Notice
This site powered by CINC: www.cincpro.com