As states start to lift restrictions, more people are resuming their search to buy a home. Mortgage Bankers Association’s Purchase Index shows the sixth consecutive weekly increase in purchase applications and a jump of 54 percent since early April. While new home sales also rose in April, seeing a gain of 0.6% from March according to the Commerce Department.
Demand is still high in many markets, but with low inventory, home prices have not dropped. Additionally, competition among homebuyers is still strong due to the lack of homes on the market.
One way to stand out among other homebuyers is to get pre-approved before you start looking. By getting pre-approved, it shows the sellers you are serious, but it also helps you know how much home you can afford.
It's important to know the difference between getting pre-qualified and pre-approved. Pre-qualification is a letter from the lender giving you an estimate of the loan amount that you may be eligible for. While a pre-approval letter is an actual statement from the lender saying that you qualify for a specific mortgage amount.
If you are thinking about buying a house, now is the time to get pre-approved. Find out how easy it is by talking with GO Mortgage today.