It clear to see that the real estate market in the United States has exhibited strong recovery from the housing crisis, with this spring showing one of the most competitive seasons for the market, well, ever. For first time buyers, breaking into this competitive market can be intimidating, especially when the odds seem stacked against you. There are tactics you as an empowered buyer can take, especially shopping with authority by securing your pre-approval first. The team here at LoanVerify is going to explore the challenges of breaking into the market as a first-time buyer, and how fast and efficient pre-approval can maximize your chances of securing that home you want.
There are several factors contributing to highly competitive nature of today’s market, chief among them, the staggering imbalance between buyers and the number of homes being sold, especially in cities across the west and north such as San Francisco, Los Angeles, Boulder, Denver, where population explosions have lead to housing shortages. Additionally, more and more investors, both at national and local levels, are transitioning coveted real estate to rental properties to capitalize on this high demand for housing. These factors are combining to produce a system that rewards experienced buyers while putting first-time buyers at a disadvantage.
First-time buyers have a large set of odds stacked against them in competitive housing markets, from a difficulty with matching large and cash-on-hand intensive down payments to navigating bidding wars against experienced buyers. Being stalled by a slow pre-approval process can stop you from even beginning to shop with any realistic expectation of what homes you can afford. Another key category used to secure your bid on a home can be a strong credit score, and first-time buyers may fail to stack up against previous homeowners who have had years or even decades building strong credit with successful mortgage payments.
This may sound pretty dire, and not be encouraging to you as a first-time buyer. Hope is not lost though! There are strategies you can take to make yourself a more empowered buyer with a competitive edge. Shopping for a home is as much a process of determination and decisiveness as it is one of experience.
Pre-approval is a process by which your loan advisor processes relevant documents that can attest to your financial history, from your W-2s, credit report, bank statements, and more. What this allows your loan advisor to do is help build a clear portrait for you of what loans would be within your price range, paving the way for you to shop a competitive market with confidence and decisiveness.
For first time buyers competing against those who have more experience securing mortgages and making offers on homes, pre-approval is an essential tool to deploy that will help ensure you have a fighting chance. However, because time is of the essence, you want to secure your pre-approval as quickly as possible, which is why trusting this process to a financial technology company like LoanVerify. Fintech companies outpace the traditional pre-approval process by allowing you to facilitate the whole process from the palm of your hand. Instantly uploading your documents directly through the application’s interface saves you crucial time. You are not skipping out on careful attention to detail by expediting the process, either. The LoanVerify application, for instance, ensures that your loan advisor is only ever a click away through, with and all of the conversations are logged so nothing is ever lost in translation.
Too many buyers today begin shopping for homes without first seeking pre-approval, and as a result, they are either denied outright or severely uninformed about what homes they can afford and as such, may lose out on the home that would’ve been right for them. LoanVerify expedites the pre-approval process to ensure that you can become an empowered shopper and give you the edge in the competitive markets of today. Download the app for free today, answer 7 short questions to help us identify your home buying goals. Let’s get you on your way towards making empowered mortgage decisions.
Loan Verify Inc. is a Equal Housing Lender. NMLS #1550836. Pre-Approval is not guaranteed and is subject to credit terms and conditions. This blog is for educational purposes.