Stay Ahead of Competition: Getting Mortgage Pre-approval
PHOTOS FROM 123RF
By Briana Frazier
H
ouse hunting is faced with challenges such as competition and a limited number of houses available in the market. Houses record low inventory levels, and if one intends to buy a house that somebody is already living in, there are potential challenges because it is a seller’s market. As of October 2021, homes were available in the market for only 18 days. The market is said to be balanced if the inventory of new houses is available for over six months. When searching for a home, one is advised to have preapprovals before the househunting process.
Consequently, one may ask whether it is necessary to have approvals. Well, it is not mandatory, but a pre-approval letter shows that someone is a reliable homeowner and is also of great aid during the house hunting journey. Pre-approval means the amount of money one can borrow to get a mortgage. IMPORTANCE OF GETTING PRE-APPROVED BEFORE HOUSE-HUNTING Getting a pre-approval is crucial in the modern day. Some sellers do not show the property on sale to people that are not pre-approved. It is thus important to have all pre-approval documents, which allow one to view all properties in the market and make the right decision; Furthermore, the document enables one to know the amount of money one will pay at the end of the month, fostering proper budgeting. It also gives the seller comfort when handling potential buyers and gains trust with the potential buyer because they know that buyers’ qualifications have been checked. Home buying starts with pre-approval because one gains a competitive advantage as a buyer. First, it shows that one is serious JULY 2022 | 85
