Central Texas has more buyers than homes available, and that gap is increasing daily. And it's not yet even "selling season".
When the number of buyers in the housing market outnumbers the number of homes for sale, it’s called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a place to call their own. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes – unless they stand out from the crowd. Here are three reasons why pre-approval should be your first step in the homebuying process.
1. Gain a Competitive Advantage
Low inventory, like we have in central Texas today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it shows the sellers you’re serious about buying a home, which is always a plus in your corner.
In Hays County, where close proximity to Austin and much lower price-per-square-foot has created high demand, newer homes under $250,000 not only come available but are commonplace. However, they usually don't last. Bottom line, in a multiple-offer situation, you will have a massive competitive advantage over a buyer that is not pre-approved.
Click the link to see ALL of the homes under $250,000 in Hays County - https://myre.io/0fnPoPJkx1yWD
And, as Dan McDorman of The Cardinal Financial Wolf Pack recently pointed out, there are numerous programs to help first-time homebuyers and those with lower income. In fact, San Marcos has a program where as little as $800 is needed toward the purchase of the home, AND up to $7,000 is available to help with closing costs and down payment costs. To talk to the expert on this program, reach out to me at (512) 669-5407 or firstname.lastname@example.org and I will get you connected right away! Or, simply reach out to Dan on Facebook, email or phone.
(512) 934-1421 dan.McDorman@cardinalfinancial.com
2. Accelerate the Homebuying Process
Pre-approval can also speed up the homebuying process, so you can move faster when you’re ready to make an offer. In a competitive arena like we have today, being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams. How long does pre-approval take?
You'll know within a week of starting the process what you are qualified for, which leads to the third point.
3. Know What You Can Borrow and Afford
Here’s the other thing: if you’re pre-approved, you also have a better sense of your budget, what you can afford, and ultimately how much you’re eligible to borrow for your mortgage. This way, you’re less apt to fall in love with a home that may be out of your reach.
Freddie Mac sets out the advantages of pre-approval in the My Home section of their website:
“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”
As a client-focused Realtor in Hays and Travis County, I have numerous relationships with fantastic lenders who can help you through this process, and they are local to central Texas. They live here and work here, and have a vested interest in your ability to purchase your next home. Once you select a lender, you’ll need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”
While there are still many additional steps you’ll need to take in the homebuying process, it’s clear why pre-approval is always the best place to begin. It’s your chance to gain the competitive edge you may need if you’re serious about owning a home.
Getting started with pre-approval is a great way to begin the homebuying journey. Let’s get together today to make sure you’re on the fastest path to homeownership.