Chess can teach you valuable lessons that can apply to other parts of your life, including the homebuying process. From the very beginning of the game, chess asks you to prepare and think about your strategy.
Like chess, the home-buying process needs strategy and forethought. Here are a few things to keep in mind when you start your house hunt to make sure your strategy is as solid as possible.
Pre-approval is the best first move for a homebuyer
When it comes to buying a property, having a strong opening play is crucial. And being pre-approved by a lender is the smartest step you can do when you start looking for a property. You’ve definitely heard that pre-approval is a crucial step, but what precisely is it and what advantages does it provide?
As the Federal Home Loan Mortgage Corporation or Freddie Mac puts it:
“The pre-approval letter from your lender tells you the maximum amount you are qualified to borrow. Getting a pre-approval letter is not a loan guarantee, it simply states how much your lender is willing to lend you. . . .”
While figuring out how much you can spend at the outset of your search is crucial, the pre-approval letter has another important function. Freddie Mac also mentions the following:
“This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.”
A powerful opening move in chess shows to your opponent that you’re a serious adversary. Your pre-approval letter serves as a signal to the seller that you are a serious, interested buyer.
Homebuying: It’s a Team Game, Not a Single-Player Experience
In today’s market, every step you take to develop your buying plan is critical. Why? Rates on mortgages are still low, but they are rising. The cost of living is rising. There are only a few houses for sale. These are just a few of the market factors to be aware of in today’s economy.
That means it’s more crucial than ever to seek expert advice as you plan your next step. Every step of the road, be sure to have a team of pros at your side – such as your trusted real estate agent and a loan officer – to ensure you make the best decisions.
Obtaining a pre-approval letter is not only smart, it can also be game-changing. It helps you to obtain a clear picture of what you can afford while also signaling to vendors that you’re serious about buying. To guarantee you’re being strategic during the house purchasing process, contact a trustworthy real estate expert immediately.