So, you’ve decided to buy a home in Miami County. Congratulations! However, before you get started I want to take a minute to discuss an important part of home-buying with you: getting pre-approved for your mortgage.
Buying a home is likely to be one of the biggest purchases of your life. After all, homes and real estate make up a significant part of our lives.
Even if this isn’t your first home, I have a great piece of advice to make your home purchase even smoother. It is getting pre-approved for your mortgage loan.
What’s a Mortgage Pre-Approval?
If you’re planning on buying a home, chances are you’ll be applying for a mortgage to pay for it.
Before you start shopping around for homes, schedule a meeting with a local lender. At this meeting, you’ll sit down with the bank to discuss every aspect of your financial portfolio. The lender will review your current income, credit score, borrowing history, outstanding debts, any assets you may have, and everything else relating to your money.
Why so thorough? The bank uses this information to determine how much money they’re willing to loan you for the purchase of a home. After reviewing your finances, the lender should provide you with a number. That number is your new budget.
Don’t settle for that number though! I highly recommend meeting with at least two to three different lenders to see if you can get a better deal elsewhere.
Why Get Pre-Approved?
There are two big reasons for getting pre-approved. First, it sets your budget for you. Now you’ll know exactly how much you’ll be able to afford, so you can begin your home search accordingly. This will save you time because you won’t even bother looking at things outside of your budget.
Second, it makes you a more competitive buyer. When you put an offer on a home, armed with a pre-approval letter, the buyer will know you’re serious. As a result, they may be more likely to accept your offer.
We’re Your Resource for Miami County Real Estate
Whether you’re buying your first home or your tenth, we’re here to help you streamline your transaction. Allow us to handle the paperwork, negotiations, and scheduling of your home purchase.