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 out of your price range.
That’s why I recommend getting a Mortgage Pre-Approval first. This is a document from your lender, stating how much of a mortgage they are willing to give you. There are two advantages to getting this pre-approval:
- It gives you the peace-of-mind you need to start viewing properties on the market now, without having to worry about how you will pay for it later.
- It also let’s sellers know that you’re a serious and prepared buyer – which gives you an advantage when making an offer.
You can arrange for a Mortgage Pre-Approval with your lender or by working with a good mortgage broker. I’m well-connected in the local real estate scene, so if you want me to recommend a reputable lender or broker, please contact me.
How Much Home Can You Afford?
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 how much money you plan to put down on the property. It may seem like a scary process, but it’s actually very straightforward. You can usually get a Mortgage Pre-Approval within 72 business hours, provided all the requested documents have been submitted. After closing, you’ll thank yourself for securing financing first because it’ll relieve a lot of stress and tension.
By knowing what you can afford early-on, you can confidently shop within that price range. For example, if you qualify for a $250,000 mortgage, and you have another $100,000 available as a down payment, you can look for homes in the $350,000 range.
Have questions about securing financing? Please submit an inquiry form and I’ll contact you.