In 2022, Mortgage Pre-Approval is Critical for Home Buyers

Why Mortgage Pre-Approval is Key This Year

Competition for available homes is fierce right now. Home supply is low and buyer demand is high. Buyers are facing serious challenges trying to find a decent house at a price they can afford.

As we head into 2022, one thing you must do to give yourself a leg-up over the buyer competition is to get pre-approved for a mortgage loan.

Watch this short video, then continue reading below…

What is Mortgage Pre-Approval?

Before you begin searching for a home, you need to know two things:

  1. Can you qualify for a home loan?
  2. How much can you safely borrow?

By contacting a lender and getting pre-approval, you can be fairly certain that your credit is good and you will have a good idea of your home-buying budget.

Mortgage lenders can do a pre-qualification which is very basic and fast, but today’s buyers will want you to provide a pre-approval letter. A pre-approval is a more in-depth check of your credit and provides more assurance to a buyer that you can actually get a loan. Today’s sellers don’t want to waste time with buyers who may get turned down for a loan after several weeks of waiting. Time is money and sellers know that they can demand buyers who are pre-approved for a loan.

Why Get Pre-Approved for a Mortgage?

There are several advantages to getting pre-approved:

  1. Save time by searching for properties you can actually afford. If you know you are approved for a $500,000 loan and you plan to put down $100,000 cash as your down payment, you know before you start searching that you should limit your search to homes priced under $600,000. And you may have to lower that amount even more because many homes are selling above list price.
  2. Sellers will take you seriously. Home sellers are getting multiple bids on their homes in many cases. If you want to be considered as a possible buyer, you need a pre-approval letter. If a seller is faced with multiple offers, they may eliminate all offers from buyers who are not pre-approved.
  3. Negotiating may be easier. Since you are pre-approved, a seller may be more willing to negotiate with you over other details of the sale, such as the closing date or repairs to the house.
  4. Final loan approval will be faster. Because you have already provided some of your details to your lender, getting pre-approved can shorten the time it takes to complete the mortgage approval process.

Don’t neglect the important step of getting a loan pre-approval before you begin making offers on homes. You’ll have a much greater chance of getting the house you want and you won’t have to wonder if you can actually afford it.

Ready to buy a house in Atlanta? Great! Contact us today to see if Kurzner Group is a good fit to help you find your dream home. We’ll talk with you and discover what you want and give you a clear picture of how we can help you get the home you are looking for.

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