If you’ve been looking for a home, especially in Arizona and California lately, you know the market is tight!

Not enough inventory to go around, and too many buyers looking to purchase a home.

Sometimes there will be 8-10 offers on a home the day it is listed depending on the price range.

So with competition fierce, how do you get an offer on a home accepted in these conditions?

Pre-approval is vital in today’s market and will give you an advantage over other buyers offers. If a home seller can see that you are already working with a mortgage lender, you are already approved for what your offer is, or more (so they know you won’t have any hold ups in the process), your offer can be more enticing than the average home offer.

If this isn’t reason enough here are a few other reasons you should get pre-approved for a home loan before you start shopping for a home.

In recent years, mortgage guidelines have been tightened. Documentation requirements have been expanded and followed more closely. A pre-approval gets you through the process and uncovers potential pitfalls long before you become obligated by a contract to purchase.

How long is the pre-approval valid?

Your pre-approval is typically good for the “shelf life” of the documents used. These will include a credit report, pay stubs, bank statements, W2s, tax returns, etc. The usable life of these documents will vary, yet it’s usually safe to say that your approval is good for up to three or four months. During this time, it pays to file all important financial documents so they’re readily available for future updates.

What if I change my mind?

That’s perfectly fine. There’s no obligation to purchase a home or use a particular loan program once you’ve been pre-approved. In fact, pre-approval simply helps to assure you know exactly what’s involved, that you are comfortable in a particular price range and that you are truly ready to move.

The process of purchasing a home is easier when you have financing in place before you make an offer. You won’t be scrambling when you find the house of your dreams, you will already know if you can afford it and feel confident in writing an offer right away.

We’re here to help you get started, and it’s never too early to do exactly that. Give us a call when you are ready.