Don’t limit yourself and know how much home you can afford.
Are you waiting for the right time to jump back into the market? Many home buyers are waiting for two things to happen: the affordability of homes to improve and interest rates to drop. The good news is that both are slowly coming down. September and October are great months to buy a house, so it’s a good idea to look for homes online or call your bank to get a pre-qualification letter or pre-approval.
When getting a pre-approval, the bank will examine how you spend your money by checking your W-2s, credit score, and bank statements. While pre-approval might seem scary for first-time home buyers, there are two good reasons why you should get pre-approved.
“Getting a pre-approval will help you know exactly what you can afford.”
First, you’ll know how much you can afford. Don’t limit yourself to a specific amount and let the bank tell you how much home you can afford. Your affordability doesn’t have to be completely spent, but you will at least know which houses are within your budget. The bank will also discuss different programs you may qualify for, based on your pre-approved rate, giving you a better start.
The second and most important reason for pre-approval is that it shows that you are serious and ready to make an offer, giving you an advantage in multiple-offer situations. This is crucial, especially now that homes are becoming more affordable and competition is high.
Even if you don’t plan to buy a home this year, getting a pre-approval will help you know exactly what you can spend. We work with different banks and credit unions, and I’d be willing to share them with you. Simply reach out to us at (607) 795-2904 or vickischamel@kw.com. I’d be happy to help.
