Spring has arrived, and with it comes the busiest season in real estate. If you’re thinking about buying a home, now is the time to prepare—because competition is heating up. One of the most crucial steps you can take before house hunting? Getting pre-approved for a mortgage.
Many buyers mistakenly believe they can start looking at homes and worry about financing later. But in a fast-moving market, that delay could cost you your dream home. Here’s why pre-approval should be at the top of your to-do list this spring.
What Is Pre-Approval and Why Does It Matter?
Pre-approval is a process where a lender evaluates your financial history to determine how much they’re willing to lend you. This involves reviewing factors like:
- Debt-to-Income Ratio (DTI): The lower your debt compared to your income, the more you may be able to borrow.
- Consistent Income & Job Stability: A steady job and income reassure lenders that you can handle monthly mortgage payments.
- Credit Score Health: Higher scores can mean better loan terms and interest rates.
- Track Record of On-Time Payments: Lenders want to see a track record of on-time payments and responsible financial habits.
Once pre-approved, you’ll receive a letter stating how much you qualify for. This gives you confidence in your budget and can speed up the closing process since much of your financial vetting is already complete.
Pre-Approval Helps You Set a Realistic Budget
It’s easy to get emotionally attached to a home—until you realize it’s out of your price range. Spring is competitive, and you don’t want to get caught in a bidding war that pushes you beyond your budget. Pre-approval helps you set clear financial boundaries so you only focus on homes you can afford. As Freddie Mac advises:
“Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Factor in additional costs like property taxes, homeowner’s insurance, and HOA fees. Then, work with your real estate agent to refine your search to homes within your comfort zone.
A Pre-Approval Letter Makes Your Offer Stand Out
Spring buyers aren’t just competing for homes—they’re competing for the seller’s attention. A pre-approval letter can make all the difference by showing sellers you’re a serious, financially vetted buyer. According to Zillow:
“Having a pre-approval letter handy while you’re shopping for a home can also help you act quickly once you’ve found a home you love. The letter shows potential sellers that you’re a serious buyer who has the financial means to close on the home.”
Sellers often prioritize offers with pre-approval letters over those without, especially in multiple-offer situations. Having this document ready can put you ahead of the competition.
Protect Your Pre-Approval Status
Once pre-approved, avoid making any big financial changes. That means:
- No new credit cards or loans (this can impact your credit score and DTI)
- No large purchases (like a new car or furniture)
- No job changes (lenders want stability)
- No sudden bank transfers (lenders will question large, unexplained deposits)
Keeping your financial situation stable ensures your pre-approval remains valid when it’s time to finalize your mortgage.
If you’re planning to buy a home this spring, getting pre-approved is your first and most important step. It helps you understand your budget, makes your offer stronger, and ensures you’re ready to move quickly in a fast-paced market. Don’t risk losing out on your dream home—start the pre-approval process today!
📲 Call or text us at 855-935-MORE to get started with a trusted lender.
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