{"id":5344,"date":"2025-01-16T11:30:00","date_gmt":"2025-01-16T11:30:00","guid":{"rendered":"https:\/\/sandpointrealtyidaho.com\/blog\/2025\/01\/16\/one-homebuying-step-you-dont-want-to-skip-pre-approval\/"},"modified":"2025-01-16T11:30:00","modified_gmt":"2025-01-16T11:30:00","slug":"one-homebuying-step-you-dont-want-to-skip-pre-approval","status":"publish","type":"post","link":"https:\/\/sandpointrealtyidaho.com\/blog\/2025\/01\/16\/one-homebuying-step-you-dont-want-to-skip-pre-approval\/","title":{"rendered":"One Homebuying Step You Don\u2019t Want To Skip: Pre-Approval"},"content":{"rendered":"\n

$\"One$ \n

There\u2019s one essential step in the homebuying<\/a> process you may not know a whole lot about and that\u2019s pre-approval. Here\u2019s a rundown of what it is and why it\u2019s so important right now.<\/p>\n

What Is Pre-Approval?<\/strong><\/h4>\nPre-approval is like getting a green light from a lender. It lets you know how much they\u2019re willing to let you borrow for a home. To determine that number, a lender looks at your financial history. According to Realtor.com<\/em>, these are some of the documents<\/a> a lender may ask you for during this process:<\/p>\n
\n
W-2s from the last two years<\/li>\n
Tax returns from the last two years<\/li>\n
Pay stubs from the last 30 days<\/li>\n
Bank statements from the last 60 days<\/li>\n
Investment account statements (if applicable)<\/li>\n
Two years of history of where you\u2019ve lived<\/li>\n<\/ul>\n
The result? You\u2019ll get a pre-approval letter showing what you can borrow. Keep in mind, that any changes in your finances can affect your pre-approval status. So, after you receive your letter, avoid switching jobs, applying for new credit cards or other loans, or taking out large sums of money from your savings.<\/p>\n
How It Helps You Determine Your Borrowing Power<\/strong><\/h4>\nThis year, home prices<\/a> are expected to rise in most places and mortgage rates are still showing some volatility. So, since affordability is still tight, it\u2019s a good idea to talk to a lender about your home loan options and how today\u2019s changing mortgage rates will impact your future monthly payment.<\/p>\n
The pre-approval process is the perfect time for that. Because it determines the maximum amount you can borrow, pre-approval also helps you figure out your budget. You should use this information to tailor your home search to what you\u2019re actually comfortable with as far as a monthly mortgage payment. That way, you don\u2019t fall in love with a house that\u2019s out of your comfort zone.<\/p>\n
How It Helps You Stand Out <\/strong><\/h4>\n
Once you find a home you want to put an offer on, pre-approval has another big perk. It not only makes your offer stronger, it shows sellers you\u2019ve already undergone a credit and financial check.<\/p>\n
When a seller sees you as a serious buyer, they may be more attracted to your offer because it seems more likely to go through. As Greg McBride, Chief Financial Analyst at Bankrate<\/em>, says:<\/p>\n
\u201cPreapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. <\/em>A preapproval means you\u2019ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.\u201d<\/em><\/strong><\/p><\/blockquote>\n
Bottom Line<\/h3>\n
If you\u2019re planning on buying a home, getting pre-approved for a mortgage should be one of the first things on your to-do list. Not only will it give you a better understanding of your borrowing power, it can put you in the best position possible to make a strong offer when you find a home you love. Connect with a trusted lender to learn more.<\/p>\n<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"
There\u2019s one essential step in the homebuying process you may not know a whole lot about and that\u2019s pre-approval. Here\u2019s a rundown of what it is and why it\u2019s so important right now. What Is Pre-Approval? Pre-approval is like getting a green light from a lender. It lets you know how much they\u2019re willing to […]<\/p>\n","protected":false},"author":1,"featured_media":5345,"comment_status":"registered_only","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[12],"tags":[29,27,20,18,28],"class_list":["post-5344","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-insight","tag-idaho-real-estate","tag-north-idaho-homes","tag-rain-silverhawk","tag-real-estate","tag-sandpoint-idaho"],"aioseo_notices":[],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/sandpointrealtyidaho.com\/blog\/wp-content\/uploads\/2025\/01\/20250116-One-Homebuying-Step-You-Don-t-Want-To-Skip-Pre-Approval-original.png?fit=750%2C410&ssl=1","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pdz2Zu-1oc","_links":{"self":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts\/5344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/comments?post=5344"}],"version-history":[{"count":0,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts\/5344\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/media\/5345"}],"wp:attachment":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/media?parent=5344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/categories?post=5344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/tags?post=5344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}