News and Events
April 4, 2007
The Advantages of Being Pre-Approved for a Mortgage
What are the Advantages of Being
Pre-Approved for a Mortgage?
When
you decide to purchase a home, you should sit down and make a list of your
family’s needs in terms of the number of bedrooms, neighborhood, schools,
location, square footage, etc. However, before you start looking and find that
dream home you need to know if you’re approved and what the terms of that
pre-approval are. The process of house hunting becomes less stressful when you
know you what you can afford.
An
experienced mortgage originator will listen & provide financing options
that best fit your family’s needs. A mortgage is the largest investment most
people make. As with all investments, be sure you do your homework on the
company that is handling your loan.
Your
originator will provide a good faith estimate that outlines your closing costs,
prepaid items, terms, rate and a total monthly payment. That will help you
determine if a property will fit into your family’s financial budget, and will
prepare you for the amount you will need at closing.
A
pre-approval gives you a competitive advantage when writing an offer on a home.
Since you already have your financing in order, the seller is more likely to
accept your offer vs others. You don’t risk losing a home of your dreams or you
won’t be disappointed when you learn the home you’ve placed an offer on is
something you can’t fit in your budget.
Typically,
a real estate professional won’t consider showing a home without a pre-approval
or pre-qualification. I would highly recommend that a first-time home buyer sit
down face-to-face to discuss mortgage options with their lender. An originator
will be able to answer all of your questions and make you feel at ease with the
entire process. With the number of special zero down loan programs, available
grants, adjustable rate loans, etc, it’s best to understand all your options
before you decide on which home you want.
In
conclusion, whatever stage of life you’re in, whether you’re a renter,
first-time home buyer, existing home owner looking for a bridge loan or a empty
nester looking to downsize, …get pre-approved today!
