Get a Mortgage Pre-Approval
An important ingredient in a successful home search is knowing how much you can afford. You don’t want to fall in love with a property only to find out it’s outside your price range.
That’s why I recommend getting a Mortgage pre-approval from a Licensed Mortgage Professional. This is a document that states how much of a mortgage you qualify for based on a complete review of all your personal and financial information. There are two advantages to getting this pre-approval:
- It gives you the peace-of-mind of knowing you can afford homes you view on the market, and won’t have problems arranging financing.
- It’s a sign to sellers that you are a serious, prepared buyer – which gives you the edge when making an offer.
How Much Home Can You Afford?
Banks and lenders use specific criteria to determine how much of a mortgage they’re willing to offer you. They look at your income, expenses, credit history and employment status, as well as the down payment you plan to make on a home. It may seem like a scary process, but it is actually straightforward. My clients can get a fully underwritten pre-approval within 1 day of providing all the required documents.
By knowing what you can afford, you can confidently shop within that price range and show prospective sellers that you are ready to buy, often improving your chances of an accepted offer.