Knowing how much you can afford is important in the home buying process. Falling in love with a property is exciting but it can be heartbreaking to find out it’s outside your price range. The first step in avoiding this pitfall is to obtain a mortgage pre-approval. Oftentimes, this can be done in a few days from any reputable bank or mortgage broker. If you don’t have a relationship with someone who can help you, Neumann | Kelley Properties is happy to provide several options for you to explore.
When doing a mortgage pre-approval a loan officer will look at your finances and determine how much money you can borrow, based on your income, down payment, current debts, current assets, and credit history. The approval also gives you an idea of how much your monthly payments will be and determines your interest rate.
The advantages of being pre-approved include:
- Peace-of-mind of knowing you can afford homes you view on the market.
- A solid foundation to obtain the financing you need when it comes time to purchase.
- Presenting an offer from a position of strength – a pre-approval shows the seller that you’ve already started working with a lender, and that the lender is willing to work with you.
