You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and
Why A Mortgage PreApproval Should Be The First Step In Your House Hunting Journey
If you’re ready to become a homeowner in the Mile High City, you may think the first thing you need to do is start checking out available properties. While it’s tempting to start scoping different real estate sites and open house listings, the first thing you need to do when you start looking for your dream home is to get pre-approved for a mortgage. True, it’s not as exciting as touring homes, but it is actually one of the best things you can do to start the process. Not only will getting pre-approved for a mortgage allow you to understand just how much home you can afford, but it also helps speed up the process when you’re ready to put in an offer and it shows sellers you’re serious.
Pre-qualified versus pre-approved:
The terms “prequalified” and “preapproved” sound nearly identical, however, when it comes to mortgages there are several differences between the two that first-time homebuyers need to understand.
What’s the difference?
Getting a prequalification on your home mortgage is just a basic step. It’s like a fact-finding mission and doesn’t really signal to sellers that you are a true buyer.
A prequalification from a mortgage lender tells you the types of loans that are available, how much they may be willing to lend to you and what your payments could possibly be. When a buyer gets a preapproved mortgage from a lender, it sends a clear signal to the seller that you are a serious contender.
Getting a pre-approval letter means the bank has done its due diligence and they are ready to lend you money. As a buyer, this is great because you no longer have to worry about making an offer contingent on financing.
Another great thing about getting a preapproved mortgage is that it will lock in your interest rate for a set time period while you house hunt. You know exactly how much you can spend and you know what your monthly mortgage payments will be thanks to your mortgage preapproval estimate. You are in a much better position to buy the home you want with a mortgage preapproval letter in your hand.
If getting a preapproved mortgage is the first step in any successful house hunt, finding an experienced and knowledgeable agent is a close second. If you’re ready to become a homeowner, contact Metrowest today – we’d love to help you start the process.
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If you’re ready to become a homeowner in the Mile High City, you may think the first thing you need to do is start checking out available properties. While it’s tempting to start scoping