Why You Want to Be Pre-Approved

The real estate market right now is schizophrenic. There are two basic scenarios for all listed property. In the first, the property isn’t properly priced (meaning it is priced too high from the perspective of buyers and other competitive listings.) These homes are sitting on the market and creating a false sense that the market has shifted in favor of buyers. The problem is, the homes that are priced appropriately, show well and are in desirable locations are receiving multiple offers and selling significantly over their asking prices.

This “duality” is important to understand for buyers because it underscores the need to be fully prepared to know how much you can purchase, how quickly you can close, and have the ability to waive as many contingencies as possible when making offers on desirable properties. Buyers who are fully approved (having gone through underwriting rather than just an automated approval,) are the ones who are successfully getting their dream homes in this climate .

Being completely approved gives buyers the comfort of knowing what their purchase ceiling is, as well as what kind of terms they can commit to during the offer. Additionally, it makes the whole experience of going through an escrow on a home purchase incredibly smooth and way less stressful. Finally, it can ensure that a buyer have the ability to make an offer preemptively should the sellers entertain it without having to race around getting an approval at the last minute. Get yourself fully preapproved and shop for your new home stress free and with total confidence.