Three reasons why every prospective buyer should get preapproved.
The most important thing you can do before you start your home search is to get preapproved with a mortgage lender, and here are three reasons why:
1. Getting a pre-qualification or a preapproval 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.
2. Finding out what your monthly payment is. Based on your income and your debt, you might be approved for, say, $1,000,000. However, you might not be comfortable with that monthly payment on a $1,000,000 house. Most times, what dictates the price of the house that somebody wants to buy is their monthly payment.
3. Finding out how much money you need to have in the bank for closing. Find out what your down payment will be with your closing costs and what your taxes and insurance for the first year will be. That all wraps together to be the total amount of money you need to bring to closing.
I hope that’s helpful information for you. If you have any questions about this or want to be connected with a mortgage lender, shoot me an email or text. I look forward to hearing from you.