Why You Should Get a Mortgage Pre-Approval
Buying a home can be a complicated process, but there are things you can do to ease some of the stress. Preparation for purchase should begin well before you ever look at a potential property. Important things to consider when purchasing a new home include crime rates, school district reputations, commute times to work or school, availability of public transportation, HOA fees, and, of course, how much you can afford. Obtaining a mortgage pre-approval is the best way to estimate how much you can finance for a new home.
Know Your Purchase Power
Determining your budget can be difficult if you plan to finance a purchase. Without knowing the exact term and interest rate you’ll be paying, you can’t accurately calculate the total purchase price you can afford. A mortgage pre-approval letter will tell you what a lender estimates they can finance based on your background and credit history. You’ll need to provide the lender with some detailed information about yourself to obtain the pre-approval, including your income figures, credit report and score, and employment history. You won’t have to worry about falling in love with a home you cannot afford as long as you stick to the pre-approval letter’s limit.
Get the Best Interest Rate
Securing pre-approval letters from multiple lenders before you begin searching for a new home is a smart move. As with any loan, shopping around is always recommended. Competing mortgage lenders may offer rates and terms that differ greatly, so experts recommend applying for pre-approval with at least five different mortgage lenders to secure the best deal.
Set Yourself Apart from the Crowd
In today’s red-hot real estate market, anything you can do to differentiate yourself from the pack is a good idea. Realtors are reporting multiple offers within just hours of a property being listed, and some homes even sell that fast. Buyers need to pull out all the stops to get their offer noticed, and including a mortgage pre-approval letter with your offer will do just that. Providing a pre-approval letter will let the seller know that you’re serious about making a purchase and have already done part of the legwork to make it happen.
Once you’ve obtained your mortgage pre-approval, you’ll be armed with the knowledge and confidence you need to make a home purchase within your budget. Once your offer is accepted, trust your new home’s closing to the experts at Benefit Title Services. Call us at (855) 969-3818 today and find out why we have satisfied customers all over the Sunshine State.
