If you’re considering purchasing a home in the not-so-distant future, you’re probably starting to keep an eye on the housing market. Maybe you’ve been shopping online for available homes in the area you’re interested in buying. Perhaps you’ve been looking into neighborhood open houses. Or maybe you’ve been thumbing through publications to get an idea of what homes are worth in certain towns. If you’re doing any of these things, you should probably contact a mortgage banker to get Pre-Approved.
Avoid barking up the wrong tree.
There are several reasons to get Pre-Approved for a mortgage prior to house hunting. But first and foremost, you want to know what kind of house you can afford. If you skip this important step, you just might fall head over heels in love with a house that’s way out of your price range. When that happens, it can be very difficult to settle for a house that is within your budget.
Take time to remedy credit issues.
When you contact a lender to get Pre-Approved, you will be required to complete an application and submit to a credit report. While you may be inclined to think that’s premature since you’re not quite ready to buy a home, in reality, there’s no time like the present. The reason for that is if your credit report reveals any issues, you’ll need time to correct those issues and get your credit on the right track.
Know all the costs involved.
Another very valid reason to get Pre-Approved prior to searching for your perfect home is so that you’ll be aware of all of the fees associated with purchasing and closing on your home. You’ll have access to detailed worksheets itemizing all the costs you’ll be responsible for at the closing table, as well as a good estimate of what your monthly mortgage payments will be and what they’ll include.
Be the best buyer you can be.
In order to compete in an aggressive housing market, you’ll want to make sure you’re the strongest buyer you can be. Real estate agents and the sellers they represent will only consider you a “serious buyer” if you’ve been Pre-Approved for a mortgage that’s in line with the homes you’re seeking out.
Moreover, if you find a home that’s priced right and has all or most of what you’re looking for, you’ll need to move quickly. That means you’ll need to have sufficient cash available for a down payment and a letter stating that you’ve been Pre-Approved for a mortgage that, at minimum, makes up the difference. After all, there may be other buyers interested in this property, which means you could end up in a bidding war in which only the strongest survive.
Buying a home is not for the faint of heart. It can be a stressful process, and you’ll want to put your best foot forward. The reward of owning a home is well worth the effort, but it’s a reward that can only be achieved by taking the first step of getting Pre-Approved for a mortgage.
Call Cliffco Mortgage Bankers at (516) 408-7300, fill out the contact form here to get started today or even consider filling out our short application to be Pre-Approved now