3 Reasons to Get Pre-Qualified When Shopping for a Home in Today’s Market

3 Reasons to Get Pre-Qualified When Shopping for a Home in Today’s Market

 

Have you been monitoring the historically low mortgage rates we’ve been seeing since July? Are you ready to take the mortgage plunge?

Are you scanning Realtor.com and other home sites daily and bookmarking your favorite homes? Or better yet, you might already be working with a trusted realtor to tour houses on your wishlist.

Great! You have a fantastic start in the home-buying process.

There’s just one more thing you might be overlooking – and it’s a big one that can give you a real advantage in today’s market.

Get pre-qualified for a home loan!

Here are 3 reasons why you need to accomplish this step right now if you’re looking to buy a home in the next few months and beyond.

Reason #1: You’ll Know How Much Home You Can Afford

The primary reason to get pre-qualified when you’re shopping for a home or already have a property in mind is to get an idea of how much house you can really afford. You may think you can afford homes in a certain price range based loosely on your debt-to-income ratio, but a pre-qualification can shed more light on your affordability by figuring in down payment and closing costs sources along with your income level and credit score. Moreover, a pre-qualification saves you time because you more than likely won’t tour properties out of your price range (even if you’re dreaming!).

Reason #2: You’ll Be a More Attractive Buyer to Sellers

It’s easy to get caught up in the frenzy of submitting a “winning” offer when you’re ready to purchase a home. But it’s not as simple as having your realtor fill in a magic number on a purchase agreement and hoping the sellers will accept without question. These days, it’s important to back-up your offer with evidence that you can afford the home you’re offering to buy. 

Having your realtor submit an offer along with a pre-qualification letter sets you apart from the buyers who don’t. You’re a more attractive buyer to sellers and listing agents and, in turn, you have a better chance of getting an offer on your dream home accepted.

Reason #3: You’ll Stand Out in Our Current Low-Inventory Market

Along with U.S. mortgage rates hitting historic lows, U.S. housing inventory is sliding to historic lows in many cities, according to Realtor.com’s July Affordability Report. The likely reason behind this trend is that many sellers are reluctant to put their homes on the market amid COVID-19. Sellers who do choose to list their homes are frequently entertaining multiple offer situations.

So if you make a move to purchase a home today, there’s a good chance you’ll be competing with other buyers and you might find yourself answering a seller’s call for a “highest and best offer.” Getting pre-qualified almost certainly puts you out in front of the other contenders. Some seller’s agents (and your agent) may even require one when evaluating and submitting offers in our current housing market.

Ready to Get Pre-Qualified? It’s Easy with Gulf Coast Bank Home Loans!

Ready to take the mortgage plunge? Stand out from the competition in today’s market by becoming a pre-qualified buyer first! 

Our process is fast and easy. Find a loan officer in your area or contact us to get started. We’re the bank that cares about you and we care about helping guide you through the home loan process, from prequalification to getting your keys at closing.