• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Cape County Living

Cape County Living

Cape County Lifestyle and Real Estate

  • About
    • Reviews
  • Communities
    • Cape Girardeau County Missouri
    • Cape Girardeau Missouri
    • Jackson Missouri
  • Real Estate
    • Open Houses This Week
    • Search For Homes
    • Acreage, Farm and Lot Listings
    • Selling A Home
    • Buying A Home
  • Blog

Pre-Approval in 2023: What You Need To Know

February 9, 2023 by Ellen Kirchdoerfer

One of the first steps in your home-buying journey is getting pre-approved. To understand why it’s such an important step, you need to understand what pre-approval is and what it does for you. Business Insider explains:

“In a preapproval [sic], the lender tells you which types of loans you may be eligible to take out, how much you may be approved to borrow, and what your rate could be.”

What Is Pre-Approval

Basically, pre-approval gives you critical information about the home-buying process that’ll help you understand your options and what you may be able to borrow.

As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.

Pre-Approval Helps Show You’re a Serious Buyer

Another added benefit is pre-approval can help a seller feel more confident in your offer because it shows you’re serious about buying their house. A recent article from Forbes notes:

“From the seller’s perspective, a preapproval [sic] letter from a reputable local lender often can make the difference between accepting and rejecting an offer.”

This goes to show, even though you may not face the intense bidding wars you saw if you tried to buy during the pandemic, pre-approval is still an important part of making a solid offer. In fact, Christy Bieber, Personal Finance Writer at The Motley Fool explains it may be the most important part of making an offer:

“Pre-approval maximizes the chances you’ll be able to actually close the deal – and sellers want to see that.

The fact that a pre-approval gives you a better chance of getting your offer accepted is undoubtedly the most important reason to complete this step . . .”

Bottom Line

Getting pre-approved is an important first step toward buying a home. It lets you know what you can borrow and shows sellers you’re serious about purchasing their home. Connect with a local real estate professional and a trusted lender so you have the tools you need to buy a home in today’s market.

Additional Home Buying Resources:

  • 9 Home Buyer Tips
  • How Much You Need To Save For a Down Payment
facebookShare on Facebook
TwitterTweet
FollowFollow us

About Ellen Kirchdoerfer

I am passionate about the real estate industry because feel everyone should have a safe place to call "HOME." Backed by the market leaders and reputation of Edge Realty, I will provide the best service possible.

Bringing Family and Homes Together!

Primary Sidebar

  • Facebook
  • Instagram
  • YouTube

FREE UPDATES!

Never miss a thing in and around Cape County!

Get Cape County Insider Updates delivered to your inbox weekly!

Search

Categories

  • Buying A Home
  • Events
  • Finance
  • Home Improvements
  • Home Maintenance
  • Lifestyle
  • Outdoors
  • Real Estate
  • Restaurants
  • Selling A Home
  • Shopping

Footer

Ellen Kirchdoerfer
Realtor

Connect with me on:

  • Facebook
  • Instagram
  • YouTube

Contact Ellen

Copyright © 2023 · Agent Focused Pro by Winning Agent · Log in

Edge Realty, 125 E. Main St., Suite A, Jackson, MO 63755   |  Mobile: 573-225-5101 | Office: 573-243-2555  |  Privacy Policy

Edge Realty