PRE-APPROVAL IN 2023: WHAT YOU NEED TO KNOW

 One of the first steps in your home-buying journey is getting pre-approved. To understand why it’s such an important step, you need to understand what pre-approval is and what it does for you. Business Insider explains:

“In a preapproval [sic], the lender tells you which types of loans you may be eligible to take you, how much you may be approved to borrow, and what your rate could be." 

Basically, pre-approval gives you critical information about the home-buying process that’ll help you understand your options and what you may be able to borrow.

How does it work? As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.

Pre-Approval Helps Show You’re a Serious Buyer

Another added benefit is pre-approval can help a seller feel more confident in your offer because it shows you’re serious about buying their house. A recent article from Forbes notes:

“From the seller’s perspective, a preapproval [sic] letter from a reputable local lender often can make the difference between accepting and rejecting an offer."

This goes to show, even though you may not face the intense bidding wars you saw if you tried to buy during the pandemic, pre-approval is still an important part of making a strong offer. In fact, Christy Bieber, Personal Finance Writer at The Motley Fool explains it may be the most important part of making an offer:

“Pre-approval maximizes the chances you’ll be able to actually close the deal-and sellers want to see that. 

The fact that a pre-approval gives you a better chance of getting your offer accepted is undoubtedly the most important reason to complete this step..." 

Bottom Line

Getting pre-approved is an important first step toward buying a home. It lets you know what you can borrow and shows sellers you’re serious about purchasing their home. Connect with the Rural KC Team-Keller Williams Partners and a trusted lender so you have the tools you need to purchase a home in today’s market.  913-837-0760 or 913-837-0411, or Bill@ruralkc.com or Danicia@ruralkc.com.  We have a list of several great lenders on our "Resource" page of the website.WWW.RURALKC.COM. 

KEY TERMS TO KNOW WHEN BUYING A HOME

Some Highlights

• Buying rural property is a major transaction that can seem even more complex when you don’t understand the terms used throughout the process.
• If you’re looking to become a rural property owner this year, it’s important to know these housing terms and how they relate to the current market so you feel confident throughout the home-buying process.
• Work with a trusted real estate agent, The Rural KC Team-Keller Williams Partners, who can answer any questions as they come up.  913-837-0760 or 913-837-0411. RURALKC.COM

Maintaining Your Horse’s Weight During the Winter

I have the easiest keeper in the barn. He lives out 24/7 on the grass with free-choice hay as needed and is fed only a ration balancer. Now that winter is officially here and the grass is sparse, should I be feeding more than just a ration balancer? Does he need more calories to stay warm?

This is a common question I think many owners with easy keepers have this time of year. With us hunkering down during miserable weather, enjoying warm drinks, log fires, and winter food, it’s easy to feel like we should be feeding our horses out in the elements more, too. Certainly, some horses struggle at this time of year to maintain their condition and will need more calories, while others will burn more calories but might not need to be fed more. The extra calorie burn in these horses can be a useful weight management tool.

Knowing whether your horse needs extra calories is best determined by assessing the condition. This can be hard during the winter in an outdoor kept horse that might have a full winter coat or be bundled up under blankets, but I would encourage you to not only look at your horse but put your hands on him too. A winter coat can make a horse appear to be carrying more weight than he is, only to result in a nasty shock when he starts shedding out! Familiarize yourself with the 1-to-9 Henneke body condition scoring scale, and then run your hands over the six areas described (the crest of the neck, withers, behind the shoulder, across the rib cage, over the back in the loin area, and the tailhead). Do this every week or two to monitor condition changes over time and catch weight gains and losses quickly before they become problems.

Your horse will be burning more calories to stay warm in colder weather, especially if not blanketed. Whether this is a problem depends on his starting condition. If he came into winter a little overweight, the extra calorie burn can be a useful tool for weight reduction, especially in an easy keeper that may struggle with weight regulation the rest of the year. In fact, not allowing a horse that came into winter a little heavy to lose weight before spring can potentially set him up for compounded weight gain when he has access to pasture again. Over time this can lead to health issues.

On the other hand, if you have managed your horse’s weight well over the summer and, into the autumn, and he came into winter at an ideal weight, then additional weight loss would not be warranted. Therefore, it’s important to know where you currently stand. If he starts to become a little too light in condition, then I would recommend some additional calories during the cold weather.

For an easy keeper, calories are best added by feeding more hay. This is true for most horses in cold weather- not just easy keepers- because the fermentation process necessary for them to digest hay has the added benefit of generating heat that will help keep them warm. Feeding a few extra pounds of hay a day should provide the calories needed to make up for those lost keeping warm.

When monitoring weather conditions to determine if more hay might be needed, keep in mind that horses can struggle to maintain warmth more during wet weather than in dry cold weather if they get wet down to their skin.

By monitoring body condition throughout the winter, you can adjust your feeding program to ensure your horse reaches spring at a good weight. Do not be afraid to allow some weight loss as needed, and remember that horses evolved gaining and losing weight through the seasons. It is our job as managers to keep that fluctuation within an acceptable range, which for me is between a 4.5 and a 6 on Henneke body condition scoring scale.

FINANCIAL FUNDEMENTALS FOR FIRST TIME HOME BUYERS

 

Are you prepping to buy your first home? If so, one of the steps you should take early on is making sure you’re financially ready for your purchase. Here are just a few of the financial fundamentals you’ll need to focus on as you set out to buy a home.

Build Your Credit

Your credit is one element that helps determine which home loan you’ll qualify for. It also impacts your mortgage interest rate. While there are many factors that go into your mortgage application, a higher credit score could lead to a lower monthly payment in the long run.

So how do you make sure your credit is in the best shape possible when it’s time to buy? A recent article from NerdWallet lists a few tips you can use as you work to build and strengthen your credit. They include:

• Tracking your credit and disputing any errors that show up on your reports.
• Paying your bills on time. This includes making loan payments and paying down any open lines of credit.
• Keeping your credit card balances low. Paying more than your minimum monthly balance when you’re able can help.

Automate Your Savings for Your House Fund

You might also be wondering how you can achieve your down payment savings goals. Bankrate provides buyers with a number of tips to help you save, including searching for down payment assistance programs and ways you can save more, faster. As the article says:

“One of the best ways to save for anything — including a down payment — is to set it and forget it. If you receive a regular paycheck, ask your employer to direct a portion of that payment into a savings account. If you’re a freelance worker or independent contractor, set up a recurring transfer from a checking account to a savings account to establish the routine.”

Get Pre-Approved

As you prepare for your purchase, you’ll also need to have a good grasp on your budget and how much you’ll be able to borrow for your home loan. That’s where the pre-approval process comes in.

Pre-approval from a lender lets you know how much money you can borrow for your home loan. And having that knowledge, plus an understanding of your savings, can help you decide on your target price range for a house.

From there, you can start browsing for houses online and see what’s available in your area in that general price point. This can help you really understand your options so you can start to picture your future home.

For Customized Advice, Build a Team of Professionals

Finally, the best way to make you’re prepared for your purchase is to connect with trusted real estate professionals. Having expert advisors in the industry will help you make strong decisions throughout the homebuying process based on your specific goals, finances, and situation. They know the market and can guide you toward the home of your dreams.

Bottom Line

If you’re ready to get the homebuying process started, connect The Rural KC Team-Keller Williams Partners to begin building your team of professionals today.  Go to our awesome website to begin your search. www.ruralkc.com