Are You Preapproved?

By
Real Estate Agent with Keller Williams Realty Evolution - Topsfield, MA 92593-B

Besides hiring a Professional Licensed Realtor® the next most important step to purchasing a home is being pre-qualified and/or pre-approved for a mortgage. A serious seller rarely considers a buyer that has not presented an offer that includes a pre-qualification/pre-approval letter. Don't wait to the last minute to accomplish this important step.

Pre-Approval Is a Critical First Step on Your Homebuying Journey

Pre-Approval Is a Critical First Step on Your Homebuying Journey

If you’re planning to buy a home this year, one of the first steps on your journey is getting pre-approved. Especially in today’s market when mortgage rates are higher than they were just a few months ago, getting a mortgage pre-approval can be a game changer. Here’s why.

What Is Pre-Approval?

To better understand why pre-approval is key, it’s important to know what pre-approval is. The Mortgage Reports explains it like this:

“When you’re ready to take the leap into homeownership, your first step is mortgage preapproval. . . . A mortgage preapproval is when a lender determines you’re qualified for a home loan. Your preapproval letter shows the maximum loan amount you’re approved for (your home buying budget), as well as the specific interest rate and loan term you can expect.

As part of the pre-approval process, a lender will look 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 your true price range and how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with mortgage rates rising and impacting affordability, a solid understanding of your numbers is even more important.

Pre-Approval Can Signal You’re a Serious Buyer

Another added benefit is that pre-approval lets the seller know you’re qualified to buy their house. A recent article from realtor.com notes:

“. . . getting pre-approved can actually improve your chances of falling into the sellers’ good graces, and you’ll want to get it done as early as you possibly can in the home-buying process.”

Even though bidding wars are easing this year as the market shifts, preapproval is still an important part of making a strong offer. It can help a seller feel more confident because it shows you’re serious about their home and that you’re a qualified buyer.

Bottom Line

Getting pre-approved for a mortgage is critical. It helps you better understand what you can borrow and shows sellers you’re serious about purchasing their home. Connect with a local real estate professional and a trusted lender so you have the tools you need to succeed as a homebuyer in today’s market.

Thank you to KCM for compiling this information

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments (10)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, this is the FIRST step of actually buying a home, unless you are paying cash!

Nov 02, 2022 09:17 AM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

When I would run into a Buyer who was not pre-qualified and then told me his finances are no ones business I knew I was dealing with a moron and would let someone else deal with him Doug Dawes . It didn't happen often but it happened at least annually.

Nov 02, 2022 09:19 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi, Joan Cox Absolutely after hiring a Realtor®...lol Enjoy the day

Nov 02, 2022 12:16 PM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

You know Bob "RealMan" Timm there are always those that refuse to follow the proven path. I say, adios and good luck

Nov 02, 2022 12:17 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Doug great advice and I am so thrilled you made it to the Daily Drop, now it would have been nice if they even Featured this great post, but I am asking too much, Endre

Nov 03, 2022 09:17 PM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Endre Barath, Jr. The weather here, north of Boston has been great. This weekend they say we could hit 80 degrees. I haven't put the heat on yet

Nov 04, 2022 07:14 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Doug:

Getting pre-approved is such a critical step in the process. It's essential to know what you can afford before getting started, and to be ready to make an offer if you find the right property. I think there are still some would-be buyers who do not understand just HOW important this is. 

Jeff

Nov 04, 2022 01:48 PM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Jeff Dowler, CRS 

I do believe you are right about some *buyers*

Nov 05, 2022 07:17 AM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

As a Realtor, the first question I ask when I meet a prospective buyer is "Are You pre-qualified or pre-approved?"   From there our conversation can go every direction necessary to meet their needs! Great Post!

Nov 15, 2022 11:45 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

You and I both Diana Dahlberg It always amazes me when people do not really understand how important it is 

Nov 15, 2022 09:29 PM