THG Tip Tuesday
When you are starting the process of purchasing a home getting pre-approved is one of the first steps. A pre-approval letter is a document that states the loan amount a lender is willing to make to a borrower. You want to make sure when you are house hunting that you are looking in the best price range for you. Your pre-approval letter is based off the information you provide to your lender, if you provide inaccurate information then you may not have an accurate pre-approval. After you do the calculations you always want to buy a home that is within your means so you are able to pay the cost of the home, as well as closing costs and fees.
In today’s market having a pre-approval is not required but it is highly recommended. If you find a home you love but you are not pre-approved you could potentially miss out on the deal by not having the documentation ready and on hand.
You will want to make sure you read through your pre-approval letter completely. There may be things that your lender needs you to do to move forward with the home purchasing process. Once you receive your pre-approval you do not want to put things on your credit card throughout the home buying process. Or making any large purchases. The lender will check your credit throughout the process as well as right before you close on your new home, and you don’t want any surprises.
Being prepared and having the required documents prior to looking will save you and your Realtor time and stress while you are looking to buy. You will know your price range. And you will have started the home purchasing process with your lender. Keeping your lender in the loop helps because they will be educating you on your eligibility, your best loan options and your best mortgage rates. So make sure if you are starting the home purchase process that you obtain the pre-approval from your lender for a smooth transaction process.