Recently, I read through Fannie Mae’s Home Purchase Sentiment Index, which confirmed what so many of us in the industry already know—that the average home price poses a challenge for buyers.
Fannie Mae found that as the average home price rises alongside limited inventory, 28 percent of qualified buyers are forgoing their home search.
This news got me thinking of ways to help buyers successfully navigate one of the most competitive markets in recent history. What’s the key?
Getting pre-approved for the right mortgage to give you an edge in a market like no other.
A mortgage pre-approval is your key to homeownership
By now, we’re all aware of the importance of getting a mortgage pre-approval. After all, most real estate agents are hesitant to show you a house without one.
Most importantly, sellers have become well-versed in their bargaining power. They’re fully aware of this market’s limited inventory, and they’re scouring over every pre-approval letter to see who has the most purchasing power.
All of this adds up to getting approved for a mortgage that will not only get you through the door but will also get you taken seriously.
IF EVERYONE HAS A PRE-APPROVAL, WHAT MAKES ME DIFFERENT?
While it’s true that being approved for a mortgage is the unspoken standard for putting an offer in on a home, there’s more to your success than just that.
Here are some ways you maximize your mortgage pre-approval for better results with sellers:
- Take advantage of Fairway’s Pre-Approval Program*. When you get an Advantage ™ Pre-approval from Fairway, you can breathe easy knowing that we’ve already looked at your finances: income, credit score, and history, debt-to-income ratio. We don’t miss a thing.
A Fairway Advantage Pre-Approval ™ is underwritten except for certain property details (contract, title search, and appraisal), which means when you make an offer, sellers know the home is as good as sold. Not many other buyers can say that.
- Competes with cash
- Tells you how much you can borrow
- Backed by Fairway’s commitment to fast closings
- Is location everything? Are you in a position to recast your search in nearby towns with similar advantages? There could be more affordable homes 30 minutes away in an area that’s not as competitive.
Adjusting your target location combined with the Fairway Advantage Preapproval Program™ can give you the edge you need to impact sellers.
Multi-families present big opportunities
If you’re still in the beginning stages of your mortgage pre-approval, you may want to consider buying an income-generating property.
A portion of your projected rental income can be factored into your application, which can raise the amount you’re qualified for. This can give you additional purchasing power, as well as the peace of mind that your new home is working for you.
Multi-family properties present a unique opportunity to check off many boxes at once:
- You can mitigate a high sale price by offsetting mortgage payments with rental income.
- It’s possible to get approved for a larger home loan.
- Building equity is easier when you have tenants helping you do it.
The type of home you’re buying can often be crucial to finding success in this market.
I’m here to show your (purchasing) power
Are you ready to see what’s possible for you? Homeownership is possible, especially when you have expert guidance.
Get pre-approved now and know exactly what you can afford before you start searching for homes.
* Fairway Advantage Pre-Approval™ is based on a full review of the borrower’s creditworthiness and is contingent upon no material changes in the borrower’s financial condition or creditworthiness at the time of final loan approval. Final loan approval is subject to the following conditions: (1) borrower has identified a suitable property, and a valid appraisal supports the proposed loan amount; (2) a valid title insurance binder has been issued, and (3) borrower selects a mortgage program and locks in an interest rate that will support the pre-approved monthly payment amount. The loan must close before the expiration date provided in the pre-approval.