Why Getting Pre-Approved is the Name of the Game

The housing market, across the board, has been insane for the last few years. Then, you throw in a pandemic on top of that and – boom! Nationally, we are seeing many people flee from the big, unaffordable cities like New York, San Francisco, Denver and are establishing roots in Texas. The reason? Affordability and a newfound flexibility with the newest emergence of remote work.

All of this sounds fantastic, right? They are! Except, now we are seeing that the largest generation of first-time home buyers are being outbid time and time again. So, what gives? Well, lack of knowledge of the local market and the process of buying a home in general, low inventory – among many other factors. Mostly, it boils down to the fact that you must be competitive in this market.

Sellers today are receiving an average of 3.8 offers on their properties, which means buyers are likely going to run into a bidding war scenario more often than not. You don’t have to follow this trend, so long as you can ensure that you set yourself up for success by getting pre-approved and fully underwritten. Fully Underwritten is the key! The difference is the strength of your approval letter. It shows the seller you are more qualified than an normal buyer.

Having a pre-approval and fully underwritten letter will give you a few advantages:

  • Shows sellers that you are a serious buyer
  • Shows sellers that you are fully qualified
  • Provides clarity about a realistic budget
  • Increases your chances of winning a home!

Curious about which lender to use and avoid? Email Brendan@AustinHomeOwnership and ask for a list of lenders.

Source: Keeping Current Matters