The Power of Pre-Approval
If you’re buying a home this spring, today’s housing market can feel like a challenge. With so few homes on the market right now, plus higher mortgage rates, it’s essential to have a firm grasp on your homebuying budget. You’ll also need a sense of determination to find the right house and act quickly when you go to put in an offer. One thing you can do to help you prepare is to get pre-approved.
To understand why it’s such an important step, you need to know what pre-approval is. As part of the process, a lender looks 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 how much money you can borrow.
Freddie Mac explains it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow so you have a stronger grasp of your options. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.
Pre-Approval Helps Show You’re a Serious Buyer
That’s not the only thing pre-approval can do. Another added benefit is it can help a seller feel more confident in your offer because it shows you’re serious about buying their house. And, with sellers seeing a slight increase in the number of offers again this spring, making a strong offer when you find the perfect house is key.
As a recent article from the Wall Street Journal (WSJ) says:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
Getting pre-approved is an important first step when you’re buying a home. It lets you know what you can borrow for your loan and shows sellers you’re serious.
When it comes to finding the perfect home in Telluride, Colorado, you need a real estate consultant with the knowledge and experience to make your dream a reality. With so few homes on the market right now, plus higher mortgage rates, it’s even more critical to have a savvy real estate professional on your side. That's why so many are turning to Anne-Britt of Mountain Rose Realty for their Telluride Real Estate needs.
Anne-Britt is one of the most experienced and knowledgeable realtors in Telluride. She has been helping buyers navigate their way through the local housing market for over 20 years. In addition to understanding current market trends and prices, she is also an expert negotiator who consistently strives to get her clients the best deal possible on each transaction.
Anne-Britt not only has an excellent grasp of local regulations and zoning laws but she also knows exactly what people look for when buying a home in Telluride. She helps her clients narrow down their search by identifying key elements - such as location, size and amenities - that fit within their budget. Once they have found their ideal home, Anne-Britt works with them to ensure that all paperwork is signed off quickly and accurately.
At Mountain Rose Realty we understand how complicated this process can be - especially during these difficult times - which is why we are committed to creating smooth transactions for our clients by providing reliable advice and superior customer service every step of the way. So if you’re considering purchasing or selling a home in Telluride this spring don't hesitate reach out to Anne-Britt at Mountain Rose Realty for help today!
Anne-Britt Ostlund | Mountain Rose Realty
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