If you're in the market to buy a home this spring, you might be facing some challenges. With limited homes available and higher mortgage rates, it's crucial to have a clear understanding of your homebuying budget. Being determined and acting swiftly when making an offer is also key. One way to prepare yourself --and even put you ahead of the competition --is by getting pre-approved.
Read on to find out more...
During this process, your loan officer or mortgage broker helps you with the application process. They will prepare an application file with your financial information so that the lender can determine the amount of loan you can borrow. Once complete, your loan officer or broker will provide you with a pre-approval letter, which outlines the maximum loan amount you can borrow.
According to Freddie Mac, pre-approval is an indication from your lender that they are ready to lend you a specific amount for your future home purchase. However, it's essential to remember that the loan amount mentioned in the pre-approval letter is the maximum offer from the lender.
Ultimately, you should only borrow an amount that you feel comfortable repaying. Your loan officer or broker can work with you to help you figure this part out.
In essence, pre-approval provides you with valuable information about the homebuying process, helping you understand your borrowing capacity and explore your options more confidently. Since higher mortgage rates can impact affordability for many buyers today, having a solid understanding of your financial situation becomes even more crucial.
This can give them more confidence in your offer, especially considering the slight increase in the number of offers that sellers are seeing this spring. Making a strong offer is crucial when you come across the perfect house.
As the Wall Street Journal recently mentioned, if you plan to use a mortgage for your home purchase, getting pre-approved should be one of the first steps in your search process. Not only does pre-approval help you focus on the right price range, but it also gives you an advantage over other buyers.
Getting pre-approved is a significant initial step when buying a home. It provides you with valuable insights into your loan amount and demonstrates your commitment to sellers.
To navigate today's market successfully, reach out to us, your local mortgage professional. Our team is ready to guide you to the best loan program for you, helping you qualify for financing and home purchase in today's competitive environment.
We've been helping customers afford the home of their dreams for 20 years + and we love what we do.
Company NMLS: 359090 / 359382
CA Dre Brokers License 01201910
400 N. MOUNTAIN AVENUE, SUITE 223
UPLAND, CA 91786
Phone: (909) 932-9226
E- Fax: (909) 803-9840
ALLIED EQUITY strives to ensure that its services are accessible to people with disabilities. ALLIED EQUITY has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
ALLIED EQUITY makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows AlliedEquity.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
ALLIED EQUITY accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
ALLIED EQUITY continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on ALLIED EQUITY website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on ALLIED EQUITY website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: Jsanchez@alliedequity.com