If you want to buy a home this year, the first step you will want to take is getting your mortgage pre-approval lined up. It is simple to do and once you have it in hand you can look for homes in your price range without wondering if you will be able to get financing. And today, sellers are going to want to see your pre-approval so they know that negotiating with you will be worth their time and yours.
Pre-Approval: How to Get It.
Call your bank, ask for their residential mortgage department and tell them you want to get pre-approved for a mortgage loan. They will set an appointment to meet you and ask you to bring along a specific list of documents. Be sure to gather these up as any missing documentation may delay the pre-approval. Pre-approvals usually take 24-48 hours to get, but some financial institutions can give you a conditional pre-approval before you leave. It’s a non-judgmental and painless experience, but it’s critical to success.
Every financial institution is a little different but essentially they will review your financial position with you and help you to understand how much mortgage debt you can take on. This discussion translates into a price range and that translates into focusing your search on homes you know you can afford. It also helps your real estate agent make the time you spend together targeted and productive.
Tip: The credit score you got on the internet may not be the same as the one your financial institution pulls. There are several ways to calculate credit scores but the only one that counts will be the one your bank gets.
How Else does Pre-Approval Make Buying Your Home Easier?
Today’s Sellers want to make sure they are negotiating in good faith with a Buyer. When your agent presents your pre-approval along with your offer to purchase, it tells your Seller you are a serious Buyer who is ready, willing and able to complete the transaction.
Most offers contain a financing contingency. That’s primarily a benefit to the Buyer as it protects them should they not be able to get their financing, but the Seller sees it as a risk. A pre-approval letter is a benefit to the Seller because it balances that risk with the assurance from your bank that you will be able to get funding. Anything you can do to reduce the Seller’s perceived risk will lead to a more amicable negotiation. The easier the negotiation the easier it is to buy your home.
Nelson & Associates Realtors Can Make Your Home Buying Experience Hassle Free when You are Pre-Approved.
Getting pre-approved is a critical first step for a great real estate experience. We can help you connect with lenders who have worked successfully with our clients before. And if you are looking for a special loan program like USDA, FHA or VA, we can point you to financial institutions who make those kinds of loans. Contact us today and we can get started right away!
