Mortgage rates are at historically low percentages so now is a great time to invest in yourself and buy a home. If you currently own a home but are thinking of upgrading, there are many opportunities to move up into your dream home. According to Freddie Mac, rates are hovering at a five-decade low. While rates are low, the number of buyers are greater than the amount of homes for sale. When the homebuyers outnumber homes for sale, this is called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a home. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes. If you’re ready to buy, preapproval for a mortgage is crucial. Here are three reasons why preapproval should help you stand out in the crowded sea of prospective homebuyers.
1. Know How Much You Can Afford
When you decide to buy a home, it can be tempting to pull up listings on your computer and schedule appointments to see your favorite houses. However, if you don’t already have a preapproval letter in your pocket, that can be a mistake. A preapproval gives you an idea of how much you can borrow. That way, you won’t have to deal with the heartbreak of falling in love with a house only to discover you can’t afford it.
2. Accelerates the Homebuying Process
Pre-approval can also speed up the homebuying process, so you can move faster when you’re ready to make an offer. In a competitive arena like the one we have today, being ready to put your best foot forward when the time comes maybe the leg-up you need to cross the finish line first and land the home of your dreams.
3. Gain a Competitive Advantage
Low house inventory means homebuyers need every advantage they can get to make a strong impression and close the deal. The best way to get a competitive advantage is to be pre-approved for a mortgage before you make an offer. It shows the sellers you’re serious about buying a home and you have the borrowing power to back up an offer.
While there are still many additional steps you’ll need to take in the homebuying process, it’s clear why pre-approval is always the best place to begin. It’s your chance to gain the competitive edge you may need if you’re serious about owning a home.
Take advantage of today’s low interest rates and get into the home of your dreams. This starts with getting preapproved for a mortgage. Speak with a local Wisconsin Mortgage Corporation loan officer today to make sure you’re on the fastest path to homeownership.