A Mortgage Pre-Approval
An important first step in a successful home search is knowing how much you can afford. By determining your approximate price range, it will focus your search on the right section of the market.
Therefore, I recommend getting a Mortgage Pre-Approval. Your bank or other lender will take an objective look at your circumstances. They will then provide you with a document stating how much they are willing to give you depending on the value of the home you are considering. There are three advantages to getting this pre-approval:
- It shows sellers that you are a serious, prepared buyer, this can give you an edge when making an offer.
- It gives you a head start on arranging financing which will help when you find a home you love and need to move quickly.
- It provides the clarity to know which homes you can potentially afford in the market.
By working with a bank, lender, or a good mortgage broker you can arrange for a Mortgage Pre-Approval. I’m well-connected in the local real estate scene and I am happy to recommend a reputable broker or lender.
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’s a straightforward process that can appear daunting when you first look at it. A good lender can provide you with a Mortgage Pre-Approval in a day. It is worth making the time for this key step.
By having an idea of what you can possibly afford you can shop within that price range. For example, if you qualify for a $850,000 mortgage, and you have another $100,000 available as a down payment, you can look for homes in the $950,000 range.
When you have questions about arranging financing, please submit the form below or call or email me.