More and more offers for home purchases are being met with stiff competition.
Last month, in fact, a majority of bids faced multiple offers, according to Redfin’s mortgage service and online platform.
It’s low rates and modest inventory that’s creating a more competitive market, especially as buyer demand goes up.
The competitive nature of today’s market is pushing borrowers to work fast to lock in rates. Some may find themselves re-entering the market if their bids are not successful. This can lead to loss of time and resources as aspiring homeowners hit the reset button on their search.
If you and your family have been eyeing Oahu real estate, there’s some good news about how to improve the chances of beating out the rest.
It can be made possible through a preapproval for a mortgage loan, which just requires some details about your employment, income, debt and financial accounts.
Unlike a prequalification, a preapproval is a firm commitment from a lender that your application has been vetted and passes muster.
The preapproval will include a solid estimate as to how much the applicant is approved to borrow and on what terms.
From the seller’s perspective, a potential buyer with a preapproval for a loan is more attractive than others who are not. A preapproval is ideal for confident buyers with strong credit ratings and financial readiness.
Before getting a preapproval, applicants will be screened for their financial health.
Once this hurdle is cleared, aspiring homebuyers can enter the market with confidence and financial reassurance to make a competitive deal and stand out from the rest.
If you’re ready to make a splash in today’s busy market, please contact us today to learn more about how to compete with the best of them.