The Benefits of Getting Pre Qualified for a Mortgage
I often get asked what the benefits of getting pre-qualified are when people are searching for a home. Here are some benefits of talking to a mortgage lender before searching for properties.
1) Knowing How Much You Can Afford:
Before you start to look at properties you need to consider what the monthly payments are going to be. What will it cost in closing fees and future payments. The last thing you want to do is find your dream home only to realize that it doesn't make sense financially and you can not afford the home.
2) Be A Prepared Buyer:
- After searching for months you finally find the home of your dreams! But wait, you waited on getting pre-approved and now your rushing to go talk to someone to get that all important pre-approval letter to submit with your offer. While your waiting on your appointment with your lender other buyers are already submitting their offers. By the time you get your pre-approval letter the house that you have been searching for now has an accepted offer.
3) What Type of Loan Do I Qualify For?
Lenders have many different loan programs available with several payment options. Whether it be a conventional loan, arm, or a FHA loan, knowing the type of loan you qualify for can help you narrow down the type of property that will work for you.
4) Sellers want to know that you can go to closing if they accept your offer.
A seller will be taking the home off the market while you go through the loan process and therefore a pre-qualification letter gives them reassurance that you will be able to go to closing.