Loan pre-approval is one of the most important steps when buying a home anywhere, but especially in the Vegas real estate market.
Loan Pre-Approval Explained
A loan pre-approval is proof that a lender is willing to lend you a specified sum for your home’s purchase. A pre-approval makes your budget clear, meaning that it’ll be easier to narrow down the list of potential homes, negotiate more effectively, and place offers with peace of mind. Most importantly, having a pre-approval makes you more attractive to sellers because it conveys high intent and that financing is not an issue.
In a lot of markets, a loan pre-approval isn’t necessarily a requirement during the home buying process. In the Vegas real estate market, however, it is crucial.
Why is Pre-Approval so Important in the Las Vegas Market?
Sellers Have Their Pick
Sellers prefer buyers who are pre-approved, and are more likely to negotiate with someone who has pre-approval. Pre-approved candidates have a leg up in multiple offer situations, which are commonplace in the Vegas market.
Homes Fly off the Market
In Las Vegas, homes are gone in a matter of hours to days, not weeks to months. Especially during this time, there is a large amount of qualified buyers and not nearly enough sellers to meet demand.
Communicates That You Mean Business
Pre-approval lets real estate agents know that you’re serious about buying a home, so they will be more likely to work harder to find your perfect deal. With such a large amount of Las Vegas buyers at any given time, a pre-approval is crucial to show that you are ready to take action. Everyone involved in your deal will be more assured (including yourself).
How to Acquire Pre-Approval?
The steps are essentially the same as applying for a loan.
- Check credit. Gather your credit reports and make sure your credit history facilitates pre-approval.
- Put together all your necessary financial information to confirm your streams of revenue, such as pay stubs, tax returns, and W-2 forms.
- Reach out to lenders.
Increasing Your Chances
- Apply jointly with a spouse or co-owner.
- Up the downpayment.
- Offer the lender more collateral.
- Longer-term loan (be wary of interest on this one..)
- Build/improve existing credit by paying off loans.
Finding a Lender
Getting a mortgage pre-approval is a crucial step before buying a home in Las Vegas. Consult with a mortgage lender to know:
- Your exact budget
- Review your options at hand
Getting pre-approved allows you to focus your home search, stay competitive, and move into your new home as soon as possible.
In order to begin the process of speaking with a local Las Vegas mortgage specialist, contact me to be connected with one of my Preferred Mortgage Lenders by clicking HERE.
In Conclusion
If you are seriously considering buying a home in the Las Vegas real estate market, getting approval from a mortgage lender is a required first step in order to be taken seriously in a seller’s market. Once you get pre-approval, you will be much more likely to find your perfect home in a smoother, more timely fashion.