Mortgage Pre-Approval Focuses Your Home Search
An important ingredient in a successful home search is knowing how much home you can afford. You don’t want to fall in love with a property only to find out it’s outside your price range and conversely you don’t want to buy less home than you need because you aren’t sure what you can afford.
That’s why I recommend getting a Mortgage Pre-Approval. This is information from your bank, or other lender, stating how much of a mortgage they are willing to give you. It’s crucial information for your Realtor to properly focus your property search and find you the right property. There are several other key advantages to getting this pre-approval:
- It gives you the peace-of-mind of knowing you can afford the homes you view on the market
- It’s a sign to sellers that you are a serious, prepared buyer – which gives you the edge when making an offer
- It often helps complete the financing condition quicker, meaning closing dates can be met on time without penalty
You can arrange for a Mortgage Pre-Approval with your bank or other lender, or by working with a good mortgage broker. I have been fortunate to connect with experienced mortgage brokers that have taken great care of many past clients and I recommend using their services in order to shop around for the best interest rates available in the market. Consider a mortgage broker the Realtor of the mortgage industry, if this is a service you need please feel free to contact me and I would be happy to put you in touch.
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 and then discuss with you the terms of the loan such as interest rate, amortization period, and open/closed payment. It is actually a pretty straightforward process and you can usually get a Mortgage Pre-Approval in a day. Curious what your mortgage could look like? Play around with the free Mortgage Calculator at the bottom of the page to see what you could afford today.
As a Realtor I have seen far too many buyers have their dream home under contract only to have it all fall apart when it came down to financing. Sadly sometimes this can’t be avoided, however you can give yourself some peace of mind and a head start when you get Pre-Approved early, trust me when i say you’ll be glad you did.
Have questions about arranging financing? Please submit the form below or call or email me, I would be happy to help.