So you’ve finally decided to purchase a home. Let us be the first ones to congratulate you! Leaping into homeownership is one of the most exciting times in anyone’s life. Whether it’s to get a little bit of extra room for your growing family (including your fur babies) or to get a little more privacy than your paper-thin-walled apartment, owning a home comes with some serious perks!
The first thing you have to consider when choosing a home is getting pre-approved for a mortgage. This will help you save time when you make an offer on a property, help you lock down an ideal interest rate, and you will know which homes to look at based on the amount of money you will be approved for.
The Steps of Mortgage Pre-Approval
Getting pre-approved for a mortgage involves a few steps and depending on your lender, the criteria for eligibility may be slightly different.
Expect lenders (banks or mortgage companies) to look at your finances including your salary and your credit. This helps them establish a figure they are comfortable with lending you and at what interest rate.
You may need to provide additional things like proof of employment, assets, debts, and the length of time you’ve worked with your employer.
Because everyone is different it’s key to look at a variety of different lenders and their rates, and compare them when making a decision. If you need help finding the best option for you, or facilitating the best rate, mortgage brokers can help open the doors when it comes to setting up a loan.
Lenders Will Have The Final Say
Once your lender has gotten their hands on all the relevant information, they will make a decision on if you are pre-approved for a mortgage or not.
Even if you are pre-approved, take into account
Some final tips to get pre-approval are to:
- Choose a home that is within your budget and allows for unforeseen expenses
- Keep all your documentation on hand
- Read the fine print of your pre-approval terms – get a lawyer or accountant to look at it
- Know the benefits of a larger down payment
It’s Time To Enter The Market
Ready to enter the market? Pre-approved and excited to get started?
Let LIFE guide you through your unique real estate journey. Professional, diligent, and down-to-earth, our mission is to help you enter the market and get precisely what you want and need – whatever that may be!
Check out this video where Dave and Kevin talk about mortgage pre-approvals!
For more on how we can get you into your dream home, contact us today!