A new housing report by the Washington Post shows that first-time homebuyers get pre-approved before house hunting.
First-Time Homebuyers Look for Financing First
In the Washington Post’s latest housing report, they found that 74% of homebuyers start their house hunt by researching financing options and getting pre-approved. For first-time homebuyers, that percentage increases to 85%.
Their survey found that many buyers consider getting a pre-approval early in the home buying process extremely valuable to their home buying journey.
Why Should Homebuyers Get Pre-Approved?
All homebuyers should get pre-approved before they begin house hunting. Pre-approvals make first-time homebuyers’ financing offers much more competitive in today’s hot market. Homebuyers who are pre-approved with JVM can close escrow in as little as 14 days.
Pre-approvals are also valuable to homebuyers because they allow for non-contingent offers and ensure that there are no major issues in their loan and home buying process. Pre-approvals help homebuyers identify any issues with credit and finances early so they can get corrected before funding.
Pre-approvals help first-time homebuyers know what they are comfortable spending on their home financing like down payment and their monthly mortgage payments. Understanding the price range that homebuyers are comfortable with is critical to making sure they are house hunting in the right markets and at the right price point.
The Washington Post’s survey found that homebuyers felt that “a pre-approval is essential in a competitive market where homes sell quickly, and sellers have a choice of offers.”
Concerned About Communication?
One of the most common fears among homebuyers in the report was communication with their lender, specifically about loan fees and finding the right loan for their financial situation. 64% of homebuyers surveyed found that the coordinating paperwork for their loan was the most difficult part of their home buying process.
At JVM Lending, Mortgage Analysts are available 7 days a week, and a Mortgage Analyst is “on call” every weekend to alleviate any concerns with communication. We also guarantee 60-minute responses to all emails and phone calls during business and weekend “on call” hours.
If you’re considering purchasing a home, start with a pre-approval. You can reach us by phone at (855) 855-4491 or by email at [email protected]. We’re happy to get you started on your home buying journey!