"There is nothing more important than a good, safe, secure home." - Rosalynn Carter Mabie

Hey Everyone,

Welcome to this week’s edition of The Ridgeline Rundown!

This week, we're tackling a crucial step in the homebuying journey that you absolutely don't want to skip: Pre-Approval. Getting pre-approved can be a game-changer, giving you a clear advantage in today's market. We'll explore why it's so important and how it can empower you on your path to homeownership.

As always, I'm here as a no-strings-attached resource for any real estate questions, market insights, or local happenings. Enjoy this week's updates, and reach out anytime!

Mortgage Minute

Today's Consumer Price Index (CPI) report was a big deal for rates, and it delivered. While important economic reports can move rates in either direction, today's had a higher chance of pushing rates down because they were already at 8-month highs. The CPI data came in lower than expected, causing bond prices to rise and lenders to lower rates. This is similar to how positive jobs reports can sometimes cause big drops in rates. While rates are still relatively high, this downward movement is a welcome change. We'll need to see further economic data to know if this trend will continue.

The Insider’s Guide to Real Estate | Tips

One Homebuying Step You Don’t Want To Skip: Pre-Approval

There’s one essential step in the homebuying process you may not know a whole lot about and that’s pre-approval. Here’s a rundown of what it is and why it’s so important right now.

What Is Pre-Approval?

Pre-approval is like getting a green light from a lender. It lets you know how much they’re willing to let you borrow for a home. To determine that number, a lender looks at your financial history. According to Realtor.com, these are some of the documents a lender may ask you for during this process:

• W-2s from the last two years

• Tax returns from the last two years

• Pay stubs from the last 30 days

• Bank statements from the last 60 days Investment account statements (if applicable)

• Two years of history of where you’ve lived

The result? You’ll get a pre-approval letter showing what you can borrow. Keep in mind, that any changes in your finances can affect your pre-approval status. So, after you receive your letter, avoid switching jobs, applying for new credit cards or other loans, or taking out large sums of money from your savings.

How It Helps You Determine Your Borrowing Power

This year, home prices are expected to rise in most places and mortgage rates are still showing some volatility. So, since affordability is still tight, it’s a good idea to talk to a lender about your home loan options and how today’s changing mortgage rates will impact your future monthly payment.

The pre-approval process is the perfect time for that. Because it determines the maximum amount you can borrow, pre-approval also helps you figure out your budget. You should use this information to tailor your home search to what you’re actually comfortable with as far as a monthly mortgage payment. That way, you don’t fall in love with a house that’s out of your comfort zone.

How It Helps You Stand Out

Once you find a home you want to put an offer on, pre-approval has another big perk. It not only makes your offer stronger, it shows sellers you’ve already undergone a credit and financial check.

When a seller sees you as a serious buyer, they may be more attracted to your offer because it seems more likely to go through. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.” 

Bottom Line

If you’re planning on buying a home, getting pre-approved for a mortgage should be one of the first things on your to-do list. Not only will it give you a better understanding of your borrowing power, it can put you in the best position possible to make a strong offer when you find a home you love. Connect with a trusted lender to learn more.

Colorado Springs Social Scene

Military News and Updates

Military Welcome Program aims to support local businesses, Service Members

Colorado Springs is a major military city, and to demonstrate support the City has created the Military Welcome Program, a hub where Service Members, Veterans, and their families can connect with local small businesses that offer military discounts.

Small Business Development Administrator Shakanah Tedder joined Loving Living Local Krista Witiak to talk more about the program and how it benefits military families in the area.

“We are host to multiple military installations and we are proud of that,” said Tedder.

Feel free to reach out with any real estate questions—I’m here to help, no matter the state!

Referrals are the biggest compliment, so send anyone my way. Until next time!