If you are looking for a new home, be sure you are pre-approved. With a mortgage pre-approval, a licensed mortgage professional can do a more complete verification prior to sending you shopping for a home, and with that done, the dollar figure you are going shopping with is actually what you can spend.
Your mortgage professional will review your application against lender and insurer guidelines to give you a clear picture of what you can afford, as well as an estimate of your payments on a specific mortgage.
Getting pre-approved for a mortgage is one of the most important steps you can take before starting your home search. A pre-approval gives you a clear idea of your budget, helps you understand what lenders may offer, and puts you in a stronger position when making an offer.
With a pre-approval, I can also arrange to have an interest rate held for you — typically between 60 to 120 days — while you shop for a home. If rates rise during that period, your held rate is protected. If rates go down, many lenders will adjust so you can take advantage of the lower rate.
To get started, I’ll need a short list of information and documents so I can review your financial picture. From there, I’ll explain:
• The types of mortgage products that may fit your needs
• The difference between shorter and longer mortgage terms
• The additional costs to expect when purchasing a home
By having a pre-approval in place, you’ll have the confidence of knowing you’re prepared — and you’ll be in a stronger negotiating position compared to buyers who haven’t taken this step.