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Housing Inventory is Up—Are You Preapproved*? Feature Image
Posted on September 13, 2022 7 minute read

Housing Inventory is Up—Are You Preapproved*?

What's in this article?

House listings are up, what does that mean for the market?
Waiting to buy a home? Now is the time to get preapproved
Make mortgage preapproval your first step
How long does mortgage preapproval take?
Work toward your dream home with mortgage preapproval

For the first time in almost three years, the total inventory of unsold homes has increased, according to the latest report on the housing market from 

July 2022 saw an increase in inventory of just 3.5% (year-over-year). This could easily be a strong indicator that the real estate market is shifting away from the type of activity seen during the pandemic.

Second, and more significantly for homebuyers, price reductions are also on the rise. 

What does this mean for you? Let’s go over how to take advantage of this timing and availability by getting preapproved for a mortgage. 

House listings are up, what does that mean for the market?

According to, these indicators reveal that the housing market continues to move towards a balance of supply and demand. 

That means that as inventory levels continue to increase, more options will be available for homebuyers.

When housing inventory is low, there are fewer homes to choose from, and homebuyers are forced to be less particular about the home they ultimately select. 

But with this current rise in inventory, you could have a greater chance to find a home with more (if not all) of the features you want—without having to break your budget. 

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Waiting to buy a home? Now is the time to get preapproved

Every homebuyer knows the mantra “location, location, location.” But timing can be just as essential. 

While a rise in house listings means there are more homes to choose from, it still can mean competition for the home you want. You want your offer to stand out from the rest.

You’ll never know when the right home will appear on the market. But, when it does, you should be ready to bid on it right away. 

So, how can you increase or improve your odds of being that winning offer?  

Make mortgage preapproval your first step

When should you get preapproved? It should be the first step in your home buying process.

A mortgage preapproval letter in your purchase offer shows sellers that you’re a serious buyer and have (or can qualify for) the financing to follow through with your bid. 

Preapproval also helps to show you how much of a mortgage loan you’re likely to qualify for, making it easier to house hunt for options in your budget. 

Because mortgage preapproval is optional, many new homebuyers make the mistake of thinking it isn’t necessary. But in any market conditions, there is no guarantee that you won’t face competing bids on the house you want. 

You don’t want to be in a situation where a competing offer has a preapproval letter and you don’t.  

How long does mortgage preapproval take?

Depending on your mortgage lender and whether you might qualify, it’s possible to get preapproved for a mortgage in a single business day. 

Some timing will depend on you and if you have all your paperwork handy. The mortgage lender will informally assess whether your credit report, DTI** (debt-to-income ratio), and your gross monthly income meet the minimum standard. 

After mortgage preapproval, it typically takes a few days to a week to physically receive the letter of preapproval. You can also look at multiple lenders and compare their requirements and timelines.

Securing mortgage preapproval will also help you speed up your whole mortgage process. 

Once you find a home that’s right for you, and your offer is accepted, you’ll have to complete the final loan approval. 

But if you’re working with the same lender who handled your preapproval, this process will be much more streamlined since they’ll already have some of your information. 

How to make your home offer stand out

For most mortgage lenders, a preapproval letter is the best they have to offer to increase your chances of winning a bid., however, offers mortgage preapproval that goes one step further, equipping our clients with an advantage beyond just a traditional preapproval letter.

The Cash Assurance program*  

The one significant disadvantage of mortgage preapproval is that it’s becoming common among home buyers. 

Some buyers may still be unaware of the edge that mortgage preapproval can give them.  But a serious buyer will include them with their offer—which makes your own letter less impactful. 

This situation is a problem all over—everyone wants to be seen as a serious buyer. 

Homefinity recognized this and asked: What is better than mortgage preapproval? The answer is simple: an offer that can compete with cash. 

By securing a Homefinity Edge preapproval and then adding Homefinity’s Cash Assurance Program, you’ll have the power to compete with cash offers for your dream home. 

Cash assurance advantages

  • The seller receives a cash guarantee on behalf of the bidder
  • As a buyer, you can compete with a cash offer
  • As a borrower, you don’t have to pay additional fees to use the program
  • If the deal cannot close for financing reasons by the agreed date, Homefinity will buy the seller’s home
  • If this guarantee is triggered, the seller can choose to walk away with $10,000 paid by Homefinity and sell their home elsewhere and the contract is terminated

Requirements for borrowers

  1. Edge Preapproval from by Homefinity
  2. VA or Conventional loan financing
  3. Borrowers must be looking to purchase a single-family residence

For those who meet these requirements, the Cash Assurance program may be just what you need to get the keys to your dream home.

With the power of a cash offer and a mortgage preapproval letter in hand, sellers can take your offer seriously and hopefully consider you at the top of their list.

Work toward your dream home with mortgage preapproval

Having the most favorable deal on the table is one of the most important factors toward getting the home you deserve. 

A Edge mortgage preapproval paired with Cash Assurance can give you the buying power you need to compete with other bidders. 

We’re so confident of our clients closing a home deal with our cash assurance program that we’re willing to put’s money on the line to complete the deal. 

Although there are many steps toward securing a mortgage loan, we can walk you through each one together to find the best mortgage for a competitive rate. 

Reach out to one of our loan officers today. 

It won’t cost you anything to talk to us about getting preapproved for a mortgage. And it could be the best step you take toward your dream home.

*Homefinity Edge Pre-Approval is based on a full review of the borrower’s creditworthiness and is contingent upon there being no material changes in the borrower’s financial condition or creditworthiness at the time of final loan approval. Final loan approval is subject to the following conditions: (1) borrower has identified a suitable property, and a valid appraisal supports the proposed loan amount; (2) a valid title insurance binder has been issued; and (3) borrower selects a mortgage program and locks in an interest rate that will support the pre-approved monthly payment amount. Loan must close before the expiration date provided in the pre-approval. Offer not available on FHA, USDA, bond, or DPA programs. Sale of home proceeds contingency not allowed. Gifts not deposited are not allowed. Please note that submitting verifying documentation is not a requirement to receive an estimate of closing costs associated with a mortgage loan.

**Debt-to-income (DTI) ratio is monthly debt/expenses divided by gross monthly income.

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