Get a Mortgage Pre-Approval
If you will be taking advantage of mortgage financing to purchase your new home, then a mortgage pre-approval is a “must have” when you start your home search. You don’t want to fall in love with a property only to find out it’s outside your price range. A pre-approval is a document from your bank or lender stating how much of a mortgage they are willing to give you. Here are some of the important advantages to getting a pre-approval:
- It gives you the peace-of-mind of knowing you can afford homes you view on the market, and won’t have problems arranging financing.
- It’s a sign to sellers that you are a serious, prepared buyer – which gives you the edge when making an offer.
- It will usually guarantee a rate for 90-120 days, even if rates go up.
You can arrange for a Mortgage Pre-Approval with your bank or other lender, or by working with a good mortgage broker. I have many contacts for bank lenders and mortgage brokers, so if you want me to recommend a reputable broker or lender, please let me know.
How Much Home Can You Afford?
Banks and lenders use specific criteria to determine how much of a mortgage they’re willing to offer you. They look at your income, expenses, credit history and employment status, as well as the down payment you plan to make on a home. It may seem like a scary process, but it is actually straightforward. You can usually get a Mortgage Pre-Approval in a day. You’ll be glad that you did.
By knowing what you can afford, you can confidently shop within that price range. For example, if you qualify for a $400,000 mortgage, and you have another $150,000 available as a down payment, you can look for homes in the $550,000 range.
Have questions about arranging financing? Please submit the form below or call or email me.