Are you looking to buy your first home? Are you thinking about making a move? Whatever your goals, when it comes to getting a mortgage, you can do a few things in advance to make the process easier!
Getting Pre-Qualified
The purpose of mortgage pre-qualification is to help you understand what you can afford when shopping for your new home.
Pre-qualification will take your assessment of your financial status and allow you to come up with a budget for a home and what you can afford for monthly payments.
Download my app today and get pre-qualified in under 60 seconds! This will also help you estimate your monthly mortgage payments and compare various payment schedules.
Getting Pre-Approved
While getting pre-qualified can give you a ballpark estimate of what you can afford, pre-approval means that a lender has stated (in writing) that you qualify for a mortgage and what amount is based on submitted documentation of your current income and credit history.
A pre-approval usually specifies a term, interest rate, and mortgage amount and is typically valid for a brief period, assuming various conditions are met.
There are a few benefits to pre-approval, including:
- It confirms the maximum amount you can afford to spend
- It can secure you an interest rate of 90-120 while you shop for your new home
- It lets the seller know that securing financing should not be an issue. This is extremely important for competitive markets where many offers may come in.
Remember that once you get your pre-approval, you will want to ensure you do not jeopardize it. Until your mortgage application and sale are completed, don’t quit or change jobs, buy a new car or trade up, transfer large sums of money between bank accounts, leave your bills unpaid, or open new credit cards. You do not want your financial or employment details to change until you close the latest mortgage.
Reach out to me to get started today!