Why does that matter so much today? Many more buyers are looking for homes today than there are available for sale, creating serious competition. According to the National Association of Realtors (NAR), the average home is getting 4.8 offers per sale. As a result, bidding wars are still common.

Your pre-approval gives you a leg up in these situations. That’s because you know exactly what you’re approved to borrow before you write your offer, and it lets the seller know you’re qualified to buy their home. This helps you and the seller feel confident about what you’re bringing. And that potentially puts you in a better position to win a bidding war.

“There’s another important reason to get preapproved, too. And that’s because there are way more buyers than homes in today’s market — which means you need to be ultra-prepared if you want to win a bidding war. Most sellers are getting multiple offers right now. And most won’t even entertain an offer without a preapproval letter included.”

Every advantage you can gain as a buyer is crucial in a constantly changing market. Mortgage rates are rising, home prices are rising, and lending institutions are regularly updating their standards. You’ll need guidance to navigate these waters, so having a team of professionals, such as a loan officer and a trusted real estate advisor, is important. They’ll help make sure you’re ready to put your best foot forward.

My thoughts!

Getting pre-approved for a mortgage should help you better understand what you can afford while serving as a good bargaining signal to sellers that you’re serious about purchasing their home. Let’s connect, so you have the tools you need to succeed as a homebuyer in today’s market.