Why Pre-Approval Is Your Homebuying Game Changer
Are you considering purchasing a Kansas City home? One crucial part of the homebuying process you don't want to neglect is pre-approval. Before you start picturing yourself in your new living room or dining on your future all-season patio, work with a trusted KC lender to prioritize this essential step. Here's why.
Kansas City home price growth is moderating and mortgage rates have decreased in recent weeks, but affordability is still tight. At the same time, there is a limited supply of homes for sale in the current KC market. This lower supply means ongoing competition among potential buyers. However, there are ways to navigate these waters if you're strategic – and pre-approval is the game changer.
What Does Pre-Approval Do for You?
You need to know more about pre-approval to understand why it's a key step. During the homebuying process, a Kansas City lender will look at your finances to determine what they're willing to loan you. From there, you will receive a pre-approval letter from your lender to know how much money you can borrow. Freddie Mac explains it 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. . . . Keep in mind that the loan amount in the pre-approval letter is the lender's maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying."
This step of the homebuying process can help you see the bigger financial picture, and getting a pre-approval letter from your KC lender is just the first step. Combining pre-approval and strategic budgeting is the golden ticket to understanding what you can afford. What's the advantage of thoroughly understanding your budget? You can save yourself from the painful heartache of falling in love with a house that might be financially out of reach.
Show Sellers You're a Serious Buyer
Getting clarity on affordability is just the beginning. There are currently more interested Kansas City buyers than homes available for sale, creating competition among homebuyers. When you prepare to move, you could find yourself in a multiple-offer scenario, but getting pre-approved for a mortgage can help you stand out.
In Kansas City's fast-moving housing market, having pre-approval in your back pocket could be your secret weapon. Pre-approval tells sellers you're a strategic and serious buyer - a powerful quality in a world of multiple offers. As an article from the Wall Street Journal (WSJ) says:
"If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too."
Show sellers you're more than just a window shopper. Undergoing a credit and financial check before placing an offer increases the likelihood of the sale moving forward without unexpected delays or issues. Additionally, Kansas City sellers will view your offer as reliable. A win-win, right?
Are you already mentally arranging furniture in your ideal Kansas City home? The Just Say Home KC real estate experts can help you connect with a trusted lender to get your pre-approval set. These experienced agents will save you time, stress, and a lot of headaches by helping you through this step of the homebuying process. Just Say Home KC is ready to help you land the home of your dreams.