If you’re thinking about a home (it's certainly a good time for it!), getting pre-approved for a mortgage should be the first item on your to-do list. So, what does that mean and why do you need it?
Pre-approval means that a mortgage lender has gone over your financials and can state, in writing, how much you're qualified to borrow. This is crucial information because it helps you define your price range, the amount of the down payment you'll need in that price range, and even the neighborhoods that are within your financial reach. There's nothing more heartbreaking for hopeful buyers than realizing the home they've set their hearts on is priced too high for their borrowing power.
But these aren't the only advantages of pre-approval. Having that lender "seal of approval" makes you a more solid candidate in the eyes of sellers. And that can make the difference between moving into and saying goodbye to a home you love.
In some cases you have to be pre-approved to even be able to put in a bid. That's typically the case if, for example, if you're considering buying Short Sales or Foreclosures.
So take that important first step toward home ownership by getting pre-approved. Contact a local RE/MAX Agent who can help you navigate the whole process.