The real estate groundhog saw its shadow.
The prime time for homebuying season – sometime in March – appears to have gotten off to an early start, according to the Mortgage Bankers Association.
Perhaps it’s the continuation of falling interest rates that are driving more people into the real estate market. A new report from the Mortgage Bankers Association said that homebuying season kicked off as early as last month. The number of mortgage applications hit an 11-year high in January.
The upward trend of people initiating the homebuying process by applying for a mortgage continued to strengthen in February, a strong indicator of how competitive the market may be as homebuying season reaches its peak.
Before it does, there are ways to become a more appealing and competitive buyer in today’s busy market.
A mortgage preapproval helps future homebuyers understand a few important things about themselves before they enter the market in earnest. It’ll tell you how much home you can afford – and therefore possibly make your home search more efficient. It’ll also detail what a mortgage payment will look like. Most of all, a preapproval is a lender’s commitment to you that you are an eligible homebuyer and you’re ready to strike a deal.
By becoming preapproved first, you automatically become more appealing to the seller, which is extremely helpful in today’s crowded market.
Take the savvy approach this homebuying season by getting a preapproval.
If you’re thinking about buying a home in the Fort Collins area, please let us know and we can help you get started on a preapproval application. We’ll ask you a few things about your credit history, employment, income and other financial assets. Once you are preapproved, you can enter the market and try to truly stand out from the rest.