How Pre-Approval Gives a Homebuyer More Power
For many Maryland and Pennsylvania home buyers, the current real estate market may feel like a large challenge. There is a continued low inventory of homes for sale and mortgage interest rates are higher than they have been for the last decade. But with the right strategy and the right help on your side purchasing a home is possible.
One of the best things a homebuyer can do to be prepared to move quickly on making a home offer is to get a mortgage pre-approval. Preapproval can give a Maryland buyer even more buying power.
What is Mortgage Pre-Approval
Preapproval is the process of speaking with a lender to discover what amount of money they would be willing to lend you for a home purchase. During the pre-approval process, a lender will ask for information about your personal finances to help them arrive at a loan amount offer. Once they have let you know this number they can supply the potential borrower with a pre-approval letter to confirm the amount of money the lender would be willing to lend you.
Knowing how much a lender is willing to lend will help you to search for homes within your budget. It will also be helpful when you go to make an offer on a home.
The Power Pre-Approval Gives a Buyer
Having a preapproval letter with you when you make a purchase offer on a home will help to communicate to the home seller that you are confident in the offer you are making to purchase their home. It shows that you have spoken with a lender and you have a good estimate of what the lender is willing to loan to you. It makes your offer even stronger as it is good proof that you are a strong candidate for loan approval and for the offer you have made on the home purchase to go through.
It can be especially powerful if you find yourself competing with another interested buyer on a Maryland home. Including your preapproval letter in the offer, agreement can give you an edge over other buyers by showing that you are solid in your ability to obtain financing for your purchase offer.
Getting pre-approval is a smart step for Maryland and Pennsylvania home buyers to help them realize their affordable home budget and make a strong offer on a home.
For more information on finding your perfect Maryland or Pennsylvania home please contact us anytime.