Get a Mortgage Pre-Approval
An important ingredient in a successful home search is knowing how much you can afford. You don’t want to fall in love with a property only to find out it’s outside your price range.
That’s why I always recommend that you speak with a mortgage broker or mortgage banker before we ever begin looking for properties.
Best of all, your mortgage lender can provide you with a mortgage pre-approval letter. This document states how much money they will lend you to buy a property. There are two advantages to getting this pre-approval:
- It gives you the peace-of-mind of knowing you can afford the homes you are looking at.
- It’s a sign to sellers that you are a serious, prepared buyer – which can give you an edge when making an offer.
I would be happy to recommend several highly qualified professionals who can assist you.
How Much Home Can You Afford?
Mortgage lenders look at your income, expenses, credit history and employment status, as well as the down payment you plan to make on a home to determine how much you can qualify to borrow. It may seem daunting, but it is actually quite straightforward. You can usually get a verbal estimate of what you will qualify for within 24 hours, and will then need to follow up with the lender to supply substantiating documentation in order to get a written pre-approval letter. While this may be somewhat time consuming, it is necessary
By knowing what you can afford, you can confidently shop within that price range. Your lender will also give you an idea of how much time it will take to complete the loan application and approval process, so you will know about how long it will take after you find your perfect house to close on it and move in.
Have questions about arranging financing? Please submit the form below or call or email me.