Get a Mortgage Pre-Approval
I know, I know. This one tends to touch a nerve sometimes. I get it, the prospect of buying a home is super exciting and you just cannot wait to get out there and see what the market has to offer.
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 outside your price range.
That’s why I recommend getting a Mortgage Pre-Approval. This is a document from your bank or other 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 of knowing you can afford homes you view on the market, and won’t have problems arranging financing.
- It’s a sign to sellers that you are a serious, prepared buyer – which gives you the edge when making an offer.
Most agents like myself will have a policy that they require that a buyer client have already spoken with a lender prior to looking at homes. This saves a lot of time and headache. Some sellers even require it before approving a showing to view their home.
You can arrange for a Mortgage Pre-Approval with your bank or other lender. I’m well-connected and would be happy to recommend a reputable broker or lender if you do not already have someone.
How Much Home Can You Afford?
Banks and 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 the down payment you plan to make on a home. It may seem like a scary process, but it is actually straightforward. You can usually get a Mortgage Pre-Approval in a day and many lenders have online applications making the process simple. You’ll be glad that you did. By knowing what you can afford, you can confidently shop within that price range.
Have questions about arranging financing? Please submit the form below or call or email me.