3 Simple Reasons to Get Pre-Approved
3 Simple Reasons to Get Pre-Approved If you want to successfully become a homeowner, getting pre-approved is one of the best first steps you can take. But sometimes buyers, especially first-time homebuyers, think that getting pre-approved is just another random thing to do. Getting pre-approved is anything but something random or optional. In fact, it’s a key step to finding the right home for you in our current market. When you get pre-approved, a lender will take a look at your financial information and give you an estimate of a mortgage that you could get approved for. A pre-approval basically says that with your current financial situation, you’ll be able to get approved for a home loan of a certain amount. Clearly, this is great information to have, but let’s go over 3 of the reasons why you should get pre-approved. 1. It doesn’t cost you anything. Getting pre-approved is free, and you’re not locked into anything with a lender. In fact, you can go to multiple lenders and see what kind of deals on rates they can offer you without spending a thing! 2. It allows you to plan for your future goals. You’ll be able to see how much of a mortgage you can afford when you get pre-approved. From there, you can take that information and use it to decide how much you want to spend on a house while keeping your future investments in mind. 3. It educates you on your loan options. When you get pre-approved, your lender will show you several different loan options that may work for you. You can take that information and find out which loan is the right fit for your current situation. Sellers also love to see buyers who are pre-approved. They’ll know that you’re prepared to buy, which can make them more likely to work with you on negotiations and concessions. We can send you the contact info of some amazing lenders who can help you start the pre-approval process. Just send us a message and we'll help you get started on the pre-approval and homebuying process!
Is a Flood of Foreclosures Coming?
Is a Flood of Foreclosures Coming? The economy and the real estate market have both shifted, and that’s made some people nervous about the future of real estate. Because we saw so many home sales in 2020 and 2021 during what was a good time for the economy and the real estate market, there are worries that a flood of foreclosures is on the horizon. But are thousands of foreclosures likely in 2023? Short answer: it’s not likely. The last time we saw widespread, mass foreclosures were during the infamous years of 2007 and 2008. During that time, predatory lending practices made it so many people got into mortgages they simply couldn’t afford. Then, when the Recession hit and people lost their jobs, they were forced to foreclose on their homes because they couldn’t keep up with the mortgage anymore. That’s not the case now. Revised lending rules have made it so lenders can’t put buyers into unaffordable and unsustainable mortgages. The mortgages taken on in the last few years were subject to those revised practices, so homeowners should be in a good position to continue paying their mortgages, even in a turbulent economy. In addition, low interest rates during the past couple of years make paying that mortgage even easier. During the mass foreclosures of 2007 and 2008, we were also in the Great Recession. Because of this, buyers were scarce. Even if homeowners wanted to sell their homes to avoid foreclosures, no one was there to buy them. Now, there are many qualified buyers just waiting for the perfect home to hit the market. So, if a homeowner finds that they can’t afford their home now, they can simply list it and sell it–likely for a profit given that most markets have increased in the meantime. At the end of the day, most homeowners are in good shape right now due to revised lending practices and more qualified buyers. We are not likely to see a flood of foreclosures in 2023, which is great news. Experts are predicting that our real estate market will return to pre-pandemic norms with a steady stream of both buyers and sellers, and no crazy mass foreclosures. Want to talk more about our real estate market and how to make smart real estate decisions in the current climate? Contact us today!
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