Why You should get pre-approved before the holidays

Thinking about buying a home in the new year? The best time to start is before the holidays!

But why?

A pre-approval is a lender's written estimate of how much you can borrow, based on a real look at your income, credit, and savings. It tells you your price range and shows sellers you're serious. Getting it done before the busy holiday season sets you up to move fast once you find the right home.

Here's why the timing matters.

Your budget gets real. Knowing your numbers before you tour means you won’t fall in love with a home outside of your price range.

Holiday spending can sneak up on you. A new credit card, a financed TV, or bigger balances on the cards you already have can affect your credit score and debt-to-income ratio. Getting pre-approved first shows you exactly where you stand and what to avoid while you're shopping.

You'll be ready when listings pick back up. As new homes start hitting the market in the new year, you can make an offer right away instead of scrambling for paperwork.

So, what do you need?

Most lenders will ask for recent pay stubs, your last two years of W-2s or tax returns, a couple months of bank statements, and a photo ID. Your lender may ask for more depending on your situation, so it's worth gathering these early.

One more tip! Pre-approvals don't last forever. Most are good for about 30 to 90 days, so if you're planning to buy in Spring, your lender can update yours when you're closer to purchasing.

Have questions about getting pre-approved? Let's connect!