Virginia Gardner

Back To Blog

Why Pre-Approval Is a Game Changer for Homebuyers

Why Pre-Approval Is a Game Changer for Homebuyers | Simplifying The Market

If youre planning to buy a home this year, you might have heard that pre-approval is a necessary step to take before starting out on your journey. But why is that? And is it still important in todays shifting market?

The truth is, getting a pre-approval letter from your lender is critical, and when it comes to your home search, it can be a game changer in so many ways.

To better understand why, its important to know what pre-approval is. Freddie Mac defines the process 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. The lender you work with will provide you with a pre-approval letter, which is an official document that states the maximum amount they are willing to lend you, . . .

Put simply, pre-approval from a lender helps you understand your true price range and how much money you can borrow for your loan. That can make it easier when you set out to search for homes. And since youll know what youre approved for, itll also help once its time to submit an offer on the home of your dreams.

Another added benefit is that pre-approval lets the seller know youre qualified to buy their house. Paul Centopani, Editor for the Mortgage Reports, explains:

. . . most sellers wont even consider an offer unless the buyer is pre-approved at the right price point. Sellers and their agents want to know youre ready and able to finance your offer amount. So youll want to have your preapproval teed up as soon as youre serious about bidding on a home you like.

Every advantage you can gain as a buyer is crucial in a market thats constantly changing. Youre going to need guidance to navigate these waters, so its important to have a team of professionals, such as a real estate advisor and trusted lender, on your side. Theyll help make sure youre ready to put your best foot forward.

Bottom Line

Getting pre-approved for a mortgage helps you better understand what you can borrow and shows sellers youre serious about purchasing their home. Lets connect so you have the tools you need to succeed as a homebuyer in todays shifting market.

Add Comment

Comments are moderated. Please be patient if your comment does not appear immediately. Thank you.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.


  1. No comments. Be the first to comment.