A Pre-approval will give you the upper hand in negotiating home purchase.

  Rising home prices continue to bolster confidence in the market as we head into spring   and some areas are actually starting to see multiple bid situations due to tight inventory. The latest figures from The National Association of Realtors show the fourth quarter median sales price rose in 133 of 152 metro areas year over year. The national median price for an existing single-family home was $178,900 in the fourth quarter, up 10 % from last year, the biggest gain since 2005. Inventory is down and days on the market has fallen 28% since last January. So while the market   may be turning towards the seller’s advantage, there are   great deals and incredibly attractive interest rates for buyers to take advantage of this season. The trick is to make your offer stand out from the rest. Chas Adams from Homestar Mortgage and I had a great conversation about financing and how pre-approval can give you the upper hand when you are ready to make a bid on a property.   When you are pre-approved, you will know exactly what you can afford and that you will not be turned down for financing, the seller will know this and understand your offer is stronger too. Say a house is on the market for $225,000, there is a full price offer on the table but the buyer has not secured financing, and   you offer $220,000   with your pre approval; your offer is much stronger, especially if the seller is under a deadline. Pre approval can help you close much faster, since the most time consuming part of the loan process has been taken care of already. If the seller has already purchased a new home locally or is moving due to employment, a faster closing could be the tipping point in favor of your bid. This Week’s Real Estate Insight: The first step in the home buying process is to make sure your credit rating is as high as possible. Make sure all bills are paid on time and pay off your credit cards. The less debt you have, the more you can borrow. Put off making any major purchases or opening new credit cards. Contact your lender early and get pre-approved for your mortgage. And always use a qualified buyer’s agent; negotiation is not always about the price and if you know the seller’s motivation, your agent can advise you on attractive terms that can give you the upper hand and make your bid stand out this spring.