Connect with us

Real Estate Tips & News

Pre-Approval Is the Homebuying Step You Can’t Afford To Skip

Published

on

There’s one essential step in the homebuying process you may not know a whole lot about, and that’s pre-approval. Here’s a rundown on what it is and why it’s so important to take care of before you start looking at homes with your RE/MAX® agent. 

What Is Pre-Approval?

Pre-approval is like getting the green light from a lender. It gives you a sense of how much they’re willing to let you borrow for your home loan. To determine that number, a lender starts by looking at your financial history. Here are some of the documents they may ask you for during this process:

  • W-2s and tax returns
  • Pay stubs and bank statements
  • Investment account statements (if applicable)
  • History of where you’ve lived

 The result? They’ll assess your financial situation, and you’ll get a pre-approval letter showing what you can borrow. Keep in mind, any changes to your finances can affect your pre-approval status. So, after you receive your letter, avoid switching jobs, applying for new credit cards or other loans, co-signing for loans, or taking money from your savings.

How It Helps You Determine Your Borrowing Power

This year, home prices are expected to rise moderately in most markets, and mortgage rates are stabilizing, but still volatile. And since affordability continues to be tight, it’s a good idea to talk to a lender about your home loan options and how today’s changing mortgage rates will impact your monthly payment.

The pre-approval process is the perfect time for that discussion. Since it determines the maximum amount you can borrow, pre-approval also helps you figure out your budget. And keep in mind, you may get approved for more than you feel comfortable borrowing, so use this time to decide what you can afford in your monthly mortgage payment as you factor in taxes, insurance, and other costs you will incur as a homeowner. Once you know what works for you financially, partner with your RE/MAX® agent to tailor your search to homes that match your budget. That way, you don’t fall in love with a house that’s realistically outside of your comfort zone.

How It Helps You Stand Out 

Once you find a home you want to put an offer on, pre-approval has another big perk. It not only makes your offer stronger, it shows sellers you’ve already undergone a credit and financial check. So, when a seller sees you’re pre-approved, they view you as a much more serious buyer and may be more attracted to your offer because it is more likely to go through. And for a seller who is ready to close a deal, an offer that’s backed by pre-approval makes a big difference. 

As Greg McBride, Chief Financial Analyst at Bankrate, says:

“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”

Bottom Line

If you’re planning on buying a home, getting pre-approved for a mortgage should be one of the first things on your to-do list. Not only will it give you a better understanding of your borrowing power, it’ll put you in the best position possible to make a strong offer when you find a home you love.

Do you know what else you need to do to make sure you’re ready to buy? Reach out, and I’ll make sure you don’t skip any of the key homebuying steps.

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Real Estate Tips & News

Navigating Today’s Market

Published

on

Wondering how to make sense of today’s housing market? You’re not alone. A lot of people are asking what’s ahead for inventory, prices, the economy, and more. You deserve answers — and that’s where your trusted local REMAX® agent comes in.

Continue Reading

Real Estate Tips & News

Weekend Projects To Boost the Value of Your Home

Published

on

With the cost of just about everything going up these days — groceries, gas and utilities — you might be feeling like now just isn’t the time to take on any home projects. But remember, you don’t need to tackle a full-on renovation to make a big impact.

And if you don’t know where to start or what’s worth doing, lean on your trusted REMAX® agent for advice before you get your projects started.

Sometimes, small weekend projects still pack a big punch.

Here are a few examples of smart, budget-friendly updates you can do in just a few days to not only make your home feel fresh and new, but add value too.

One key place a lot of homeowners want to give some love? The kitchen. But instead of gutting the entire thing, think about smaller ways to give your space a facelift. You could go for new hardware, or maybe even add a backsplash. And if you want a refresh on your cabinets, consider bringing in a pro to paint or re-finish them. Just remember, the right tools are essential to a quality end product. Your REMAX agent can recommend local pros they trust, if you do need to hire someone to get the job done.

Another easy win? Light fixtures. This is one of the most overlooked updates, and one of the most affordable. Switch out that builder-grade fixture in your dining room or hallway for something a bit more modern or with a spark of personality. That’s an easy win to instantly change the feel of a room. And it doesn’t have to cost more than a nice dinner out.

Strategic bathroom refreshes are another great bang-for-your-buck project. You’ll be surprised the difference a new faucet, mirror or shower curtain can make. Add some fluffy towels and a plant or two, and suddenly you’ve got spa vibes on a shoestring budget.

Wallpaper is also having a moment right now — and is pretty affordable. Whether it’s the traditional variety or the peel-and-stick kind, a pattern can add interest and depth to a room. Just don’t overdo it. Sometimes too much can be overpowering.

And don’t underestimate the power of paint. A fresh, neutral coat on the walls can do wonders, especially if your current colors are looking a little tired or too specific. The right shade can brighten a room, make it feel bigger and create a clean, updated look.

The key is playing it smart with your budget.

None of these projects require a ton of time or a huge payout. You may not even need to hire a contractor. Focus on the little upgrades that make a big visual impact, because even in a time when everything feels more expensive, you still deserve to love your home.

This weekend, grab a coffee, throw on some music and knock out one small project. Your home (and future self) will thank you.

Bottom Line

When everything feels more expensive, it’s smart to focus on small updates that make a big impact. You don’t need a huge budget to love where you live. You just need a few good ideas (and maybe a little encouragement).

What’s on your weekend project list? If you’re ready to tackle those small-but-mighty upgrades, your trusted REMAX agent can help you prioritize what adds the most value. You don’t have to spend a fortune to make an impact.

Continue Reading

Real Estate Tips & News

What Happens to the Housing Market When the Economy Slows Down?

Published

on

There’s a lot of noise out there about what an economic slowdown could mean for the housing market. And if it leaves you feeling a little uneasy, you’re not alone. But here’s the thing.

If you’re worried about what a potential recession could mean for the value of your home, or your homebuying power, your trusted REMAX® agent is here to help set the record straight. You don’t have to fear the market when you understand what the data actually shows.

A Recession Doesn’t Automatically Mean Home Prices Will Fall

It’s easy to assume that if the economy slows down, home prices will fall. You might remember what happened in 2008. But the truth is: the housing crash of 2008 was an exception — not the rule.

It hadn’t happened before. And it hasn’t happened since. But what made 2008 so different? It was a flood of oversupply and very different lending standards. And everyone remembers how painful that time was. 

Today, lending is much tighter, and even with inventory rising, the overall number of homes for sale remains well below normal levels. That keeps upward pressure on prices — and it keeps prices from falling significantly on a national level. And while prices are moderating in some markets today, a significant crash is unlikely. 

In fact, according to data from Cotality, in four of the last six recessions, home prices actually went up (see graph below):

Don’t let fear of a recession make you assume prices are about to fall dramatically. 

And since prices usually follow the path they’re already on, in most markets they should rise, not fall, in the days ahead. The rise just may slower, or even flat, but certainly not a crash. 

Mortgage Rates Typically Decline During Recessions 

Another important pattern you should know? Mortgage rates usually fall when the economy slows down.

Looking at the data for the last six recessions, mortgage rates came down each time — helping boost buyer purchasing power, even during tougher economic periods (see graph below):

a graph of a graph showing the rate of mortgage ratesIf a recession does happen, history suggests you could see some relief in mortgage rates. However, it’s important to stay realistic. While a dip is possible, we’re unlikely to return to the ultra-low 3% rates seen in 2020 and 2021. 

Bottom Line

Economic shifts are part of the cycle, but they don’t have to derail your plans to buy or sell a home. Don’t let fear be the thing that keeps you from your next move.

Instead, lean on facts to guide your decisions. And your trusted REMAX agent is the perfect person to make sure you have the information you need to feel confident moving forward.

Continue Reading

Subscribe for Weekly

Real Estate Insights

Advertisement

Trending

Copyright © 2020-2025 Landshark Mark, LLC. All rights reserved.  
The information contained, and the opinions expressed, in these article are not intended to be construed as investment advice. Let's Talk Real Estate, Mark Sincavage, Landshark Mark, LLC and Keeping Current Matters, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Let's Talk Real Estate, Mark Sincavage and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.