If you’re buying a home this spring, today’s housing market can feel like a challenge. With homes having higher mortgage rates, it’s essential to have a firm grasp on your homebuying budget. You’ll also need a sense of determination to find the right house and act quickly when you go to put in an offer. One thing you can do to help you prepare is to get pre-approved.
To understand why it’s such an important step, you need to know what pre-approval is. As part of the process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow.
Freddie Mac explains it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Basically, pre-approval gives you critical information about the home-buying process that’ll help you understand how much you may be able to borrow so you have a stronger grasp of your options. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.
Pre-Approval Helps Show You’re a Serious Buyer
That’s not the only thing pre-approval can do. Another added benefit is it can help a seller feel more confident in your offer because it shows you’re serious about buying their house. And, with sellers seeing a slight increase in the number of offers again this spring, making a strong offer when you find the perfect house is key.
As a recent article from the Wall Street Journal (WSJ) says:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
Bottom Line
Getting pre-approved is an important first step when you’re buying a home. It lets you know what you can borrow for your loan and shows sellers you’re serious. Connect with a local real estate professional and a trusted lender so you have the tools you need to purchase a home in today’s market.
If you’re ready to jump into the market and take advantage of the increasing supply of homes hitting the Tennessee Housing Market, let’s connect today. The opportunity in the Knoxville market is knocking, will you answer? Give your Hometown Experts a call so you have expert advice on your specific situation during today’s market. 865-693-SOLD (7653)
Check out our latest show!
Join Ryan Coleman of Hometown Realty as he shares valuable insights and tips on investing in Knoxville’s real estate market. Whether you’re a seasoned investor or just starting out, this video is packed with information that will help you navigate the market and make informed decisions. From understanding local trends to identifying the best neighborhoods, Ryan covers it all. Don’t miss out on the opportunity to learn from one of the best in the business! Be sure to like/subscribe https://www.youtube.com/channel/UC1c4z7IVs5rIs0QxWXCibAw?sub_confirmation=1
Click here for links to our Radio Show!
Check your home’s value by visiting our free home valuation tool here: What’s my home worth
Hometown Realty is a Proud Sponsor of the Tennessee Volunteers:
As Tennessee’s Realtor®, we are proud to partner with the University of Tennessee’s athletic program each year. Our partnership with UT athletics is a powerful way for us to align our brand with the community pride and passion that surrounds this beloved institution. By supporting UT athletics, we demonstrate our commitment to not only providing exceptional real estate services but also investing in the success and growth of the community we serve. Overall, our partnership with the University of Tennessee’s athletic program allows us to give back to the community we are proud to call home.
Did you know we are giving away free tours of the Tennessee Athletics Departments at UT? If you are one of our great clients give us a call to set up an exclusive VIP tour! For more information visit the VIP TOUR page! This is completely free, we want to give back to our awesome clients & potential clients!
