Today, the most savvy homebuyers in El Paso are using cash sales to close deals quickly. Others are contacting their lending institutions to get “Pre-Approval” before even starting their house search. The current market is pushing more and more buyers into pre-approval mode due to the intense competition for quality homes. In El Paso, the demand for homes exceeds the supply, and buyers often find themselves competing with each other. In many cases, the “fastest” buyer is the one who secures the home.
The “fastest” buyers are those with sufficient cash in their bank accounts to purchase the home outright. These buyers don’t need a lender or pre-approval to close a deal.
Adding to the motivation for pre-approvals is the fact that banks and other mortgage lenders are dealing with more restrictive lending rules. This is the result of the reckless and fraudulent lending practices from the “sub-prime” era. Today, securing a home mortgage requires more than just being able to sign a few documents. Buyers must document their income and have a down payment in today’s stricter lending environment. Take advantage of free information sources to navigate this process.
Pre-approvals are further driven by the fact that many sub-markets in El Paso have seen double-digit increases in home values. This creates a sense of urgency for buyers to act quickly before prices rise even further. The pre-approval letter also provides buyers with an upper limit of lending, helping them avoid overspending and sticking to their affordable price range.
Sellers in El Paso have seen the recent price increases and are now asking for “top dollar” when listing their homes. The imbalance in supply and demand, combined with these price increases, will likely continue to drive home prices up in the coming years. Local classified ads and online listings are flooded with “Sell My House Fast” advertisements, further signaling a hot real estate market.
Remember, cash is king. Buyers with cash can move faster, and sellers love the certainty that comes with a cash transaction. However, if you don’t have cash, a pre-approval letter from a lender is the next best option. Good luck!
