{"id":6000,"date":"2024-09-10T05:30:00","date_gmt":"2024-09-10T10:30:00","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/why-pre-approval-should-be-at-the-top-of-your-homebuying-to-do-list\/"},"modified":"2024-09-10T05:30:00","modified_gmt":"2024-09-10T10:30:00","slug":"why-pre-approval-should-be-at-the-top-of-your-homebuying-to-do-list","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/why-pre-approval-should-be-at-the-top-of-your-homebuying-to-do-list\/","title":{"rendered":"Why Pre-Approval Should Be at the Top of Your Homebuying To-Do List"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\"  src=\"https:\/\/i0.wp.com\/files.keepingcurrentmatters.com\/KeepingCurrentMatters\/content\/images\/20240904\/20240910-Why-Pre-Approval-Should-Be-at-the-Top-of-Your-Homebuying-To-Do-List-original.png?ssl=1\" alt=\"Why Pre-Approval Should Be at the Top of Your Homebuying To-Do List Simplifying The Market\" loading=\"lazy\" style=\"margin-bottom: 5px;clear: both;max-width: 100%\" \/><\/p>\n<p>Since the supply of <a href=\"https:\/\/www.simplifyingthemarket.com\/2024\/08\/12\/are-there-more-homes-for-sale-where-you-live\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">homes for sale<\/a> is growing and <a href=\"https:\/\/www.simplifyingthemarket.com\/2024\/08\/07\/mortgage-rates-down-a-full-percent-from-recent-high\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">mortgage rates<\/a> are coming down, you may be thinking it\u2019s finally <a href=\"https:\/\/www.simplifyingthemarket.com\/2024\/08\/16\/3-reasons-to-move-in-todays-shifting-market\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">your moment<\/a> to jump into the market. To make sure you\u2019re ready, you need to get pre-approved for a mortgage. <\/p>\n<p>That\u2019s when a lender looks at your finances, including things like your W-2, tax returns, <a href=\"https:\/\/www.simplifyingthemarket.com\/2024\/08\/15\/what-credit-score-do-you-really-need-to-buy-a-house\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">credit score<\/a>, and bank statements, to figure out what they\u2019re willing to loan you. After that process, you\u2019ll get a pre-approval letter to show what you can borrow. Here are two reasons why this is essential in today\u2019s market.<\/p>\n<h4><strong>Pre-Approval Helps You Know Your Numbers<\/strong><\/h4>\n<p>While&nbsp;<a href=\"https:\/\/www.simplifyingthemarket.com\/2024\/01\/18\/3-key-factors-affecting-home-affordability\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">home affordability<\/a>&nbsp;is finally starting to show signs of improving, it\u2019s still tight. So, it\u2019s a good idea to talk to a lender about your loan options and how today\u2019s changing <a href=\"https:\/\/www.simplifyingthemarket.com\/2024\/08\/19\/how-mortgage-rate-changes-impact-your-homebuying-power\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">mortgage rates<\/a> will impact your monthly payment. The pre-approval process is the perfect time for that. In addition to determining the maximum amount you can borrow, pre-approval also helps you understand this piece of the puzzle. As <em>Investopedia <\/em>says:<\/p>\n<blockquote><p><em>\u201cConsulting with a lender and obtaining a pre-approval letter allows you to discuss loan options and budgeting with the lender; <\/em><strong><em>this step can clarify your total house-hunting budget and the monthly mortgage payment you can afford<\/em><\/strong><em>.\u201d<\/em><\/p><\/blockquote>\n<p>You should use this information to tailor your&nbsp;<a href=\"https:\/\/www.simplifyingthemarket.com\/2024\/07\/22\/how-affordability-and-remote-work-are-changing-where-people-live\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">home search<\/a>&nbsp;to what you\u2019re actually comfortable with budget-wise. Since mortgage rates have inched down some lately, you may find you\u2019re able to afford a bit more than you\u2019d expect for your monthly payment, but you still want to <a href=\"https:\/\/www.simplifyingthemarket.com\/2024\/07\/19\/the-biggest-mistakes-homebuyers-are-making-right-now\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">avoid overextending<\/a>. As CNET explains:<\/p>\n<blockquote><p><em>\u201cIn many cases, a lender may preapprove you for more than you need to spend on a home. And while it can be tempting to look at houses outside your budget, it won\u2019t help you in the long run. <\/em><strong><em>Before you start touring homes, figure out how much you can realistically afford and stick to your budget.\u201d<\/em><\/strong><\/p><\/blockquote>\n<h4><strong>Pre-Approval Makes Your Offer More Appealing<\/strong><\/h4>\n<p>And once you do find a home you want in your budget, pre-approval has another big perk. It not only makes your offer stronger, it also shows sellers you\u2019ve already undergone a credit and financial check. When a seller sees you as a serious buyer, they may be more attracted to your offer because it seems more likely to go through. As Greg McBride, Chief Financial Analyst at&nbsp;<em>Bankrate,<\/em>&nbsp;says:<\/p>\n<blockquote><p><em>\u201cPreapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements.&nbsp;<\/em><strong><em>A preapproval means you\u2019ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount<\/em><\/strong><em>.\u201d<\/em><\/p><\/blockquote>\n<p>As mortgage rates trend down, more buyers are going to be ready to jump back into the market. And while demand is still limited right now, there\u2019s the potential for competition to pick back up, especially in hot markets. So, why not stack the deck in your favor and make sure you\u2019re putting yourself in the best position possible when you find a home you love?<\/p>\n<h3>Bottom Line<\/h3>\n<p>If you\u2019re planning on buying a home, don\u2019t forget to get pre-approved early in the process. It can help you get a more in-depth understanding of what you can borrow and shows sellers you mean business.<\/p>\n<p>Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since the supply of homes for sale is growing and mortgage rates are coming down, you may be thinking it\u2019s finally your moment to jump into the market. To make sure you\u2019re ready, you need to get pre-approved for a mortgage. That\u2019s when a lender looks at your finances, including things like your W-2, tax [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6001,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-6000","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why Pre-Approval Should Be at the Top of Your Homebuying To-Do List&#8212;NWI Loan Guy Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nwiloanguy.com\/blog\/why-pre-approval-should-be-at-the-top-of-your-homebuying-to-do-list\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Pre-Approval Should Be at the Top of Your Homebuying To-Do List&#8212;NWI Loan Guy Blog\" \/>\n<meta property=\"og:description\" content=\"Since the supply of homes for sale is growing and mortgage rates are coming down, you may be thinking it\u2019s finally your moment to jump into the market. 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