When consumed with searching for your new home, it’s easy to forget one of the most important steps in the home-buying process: arming yourself with a pre-approved mortgage loan. It’s a commitment from a lender to lend to you with specifications on the exact loan amount you’ll receive, and it provides you with several advantages when purchasing a house, including:
- Establishing an advantage in a competitive market: Having a preapproval letter provides you with an edge in a multi-offer situation. Sellers often prefer working with potential buyers who are preapproved in order to avoid the threat of a deal falling through because the purchaser cannot get sufficient financing. In fact, a seller might accept an offer from a pre-approved buyer over a higher offer from a buyer who has not been preapproved.
- Finding the best possible type of loan: Working with a mortgage lender prior to beginning your house hunt allows plenty of time to evaluate what mortgage product might work best for your financial goals.
- Establishing the price range: Getting preapproved for a mortgage allows you to determine a budget for your new home. You can then focus on finding a home in your established price range without the worry of not being
able to afford it.
- Seeking comfort with the loan amount: By taking the time to seek preapproval, you can select a loan amount that you’re comfortable with. In many cases, buyers can qualify for mortgages that are more expensive than what they want to commit to for the long term. It’s important for you to purchase a home that you feel you can afford.
Coldwell Banker® has access to an outstanding mortgage company, Guaranteed Rate Affinity, and I am happy to help guide you through the mortgage pre-approval process and answer any questions you may have.
Source/Credit: Coldwell Banker Residential Brokerage