Why You Need To Get a Pre-Approval
A mortgage pre-approval is an important part in the process of purchasing a home, especially as a First Time Home Buyer. If you are a first-time home buyer, it is imperative to obtain a mortgage pre-approval before speaking with a real estate agent. Your pre-approval will save you a lot of time and stress and I am going to explain why.
What is a Mortgage Pre-Approval?
A mortgage pre-approval is based on the information you have provided about your finances. A pre-approval considers, information about your annual income, credit history and other variables, combined to measure your debt ratios. Your debt ratios will display, how much you of a mortgage you will be able to afford.
The most important component is having your documents supporting this information. Your mortgage agent will then pre-approve you for a certain mortgage amount. Based on your information, your mortgage agent will give you an idea of what rate, term and payment you may qualify for.
Why Pre-approvals are so Important for Your Realtor.
In today’s real estate markets, you must have a pre approval done before looking for your new home. Its in your best interest, to know how much of mortgage you can afford before speaking to your realtor. I recommend saving yourself time, stress, and even disappointment by getting a pre-approval done. Believe me, your realtor will really appreciate that you have taken the steps necessary, to know that you can purchase a property.
Why Pre-Approvals Are So Essential.
This is why I believe pre-approvals are essential.
Pre-approvals make the buying process much easier and less time consuming. A pre-approval will also eliminate the need to visit homes that are unrealistic to the buyer. It will also allow your agent to be more efficient with his/her time in assisting you.
If a buyer is not pre-approved, then they run the risk of not being able to get an approval for the size of the mortgage needed, to purchase the property. A pre- approval will not only save you time but will also instill confidence in the seller and real estate agents involved. This will show that you are a serious buyer.
Pre-approvals give purchasers realistic expectations of what they can buy. It will put your purchase options into perspective because you will be able to evaluate the size of your down payment and the size of a mortgage that you will be able to borrow.
In the end pre-approval will not only save you time but will also make the process smoother. The real estate agents will also appreciate that you are prepared. It makes their job a lot easier and remember they work for you!
A Guide to Buying Your First Home