I don’t need a pre-approval before I start looking for a home, or do I?

What is Supply and Demand? Why is it important to me?

In today’s housing market it is getting extremely competitive among buyers because of the lack of inventory. Currently there are more buyers in the market than there are available homes for sale. It is simple economics and is a perfect example of the theory “supply and demand.” The definition of this theory is as followed: “the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.” It is recommended that you are to be fully prepared when you start searching for a new home.

So what does this mean for you if you are new to the process? Where do you start? Should you look at homes first? Why do you need a pre-approval? Let’s get some of these questions answered for you. Before you start actively looking for a new home, it is highly recommended that you get pre-approved. A pre-approval will do a few things for you. First, it will see if you are qualified to purchase a home. Second, you will be able to speak with a mortgage professional that will assist you in determining your price range. Then, you will know exactly what your purchase ability is and can start looking at homes in that price point. Finally, when you fall in love with a home and decide to make an offer, the sellers will know you are a serious buyer because you have already taken the steps to get pre-approved. This is will give you a competitive advantage over buyers in the market that have not gotten pre-approved.

What do I do after I get pre-approved?

After you get your pre-approval, then it is time to get in contact with your Realtor. If you don’t have a Realtor, we would be happy to put you in contact with some of the many knowledgeable professionals that we do business with. A Realtor will help fine tune your home search. Let them know exactly what you are looking for and they can put together a more detailed list of homes that meet your criteria. It is also very important to work with a local Realtor because they have instant access to all of the new listings that hit the market. Some of the popular on-line homes search websites do not update as frequently and in some cases you might find a home that is already under contract. This will also give you the competitive advantage over other buyers in the market that are using the on-line home searches.

The home buying process can seem a little overwhelming if it is your first time, but rest assured our team is here to help make this an easy and smooth process. Let us take care of  If you ever have questions about anything, please contact us at 219-728-2059 or e-mail us anytime at info@cmelending.com.

CME Lending Group NMLS: 1248883

219-728-2059 | info@cmelending.com

 

CME Lending Group

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