Getting pre-approved is crucial for a successful home purchase.
Most real estate professionals will advise you to get pre-approved with a mortgage lender before you start your home search. Why is this the case? Today I will share with you three reasons why getting pre-approved is critical:
1. The pre-approval letter. When it comes time to make an offer on a house, the first thing they will ask you for is a copy of that letter. If you don’t have one in hand, you run the risk of losing that house that you want to make an offer on.
2. Determining your monthly payment. Based on your income and your debt, you might be approved for $1,000,000. However, you might not be comfortable with the monthly payment that comes with that $1,000,000 house. Most times, what dictates the price of the house that somebody wants to buy is what their monthly payment will look like.
3. How much you need for closing. Determine how much money you need in the bank for closing. Find out what your down payment will be with your closing costs and your taxes and insurance for the first year. They’re all wrapped together to be the total amount of money you need to bring to closing.
Talk to a mortgage lender before you start your home search. If you have any questions about this topic or real estate in general, please don’t hesitate to call or email me. I would be happy to serve as a resource for all of your real estate needs.