How much house can you buy? When deciding this with your real estate agent, it helps to act early toward getting mortgage credit approval. Since a pre-approval, unlike a pre-qualification, is based on your specific financial situation, it takes the mystery out of what you can afford. Not only will it help you understand which homes to consider, it will give any prospective seller more confidence in your ability to obtain a mortgage. (How to check my credit rating before applying for a mortgage.)
Talk to the Pros
Look for a loan officer or mortgage specialist at a mortgage company or the mortgage division of a bank. They will help you determine the monthly payment you’re comfortable with and provide you with a mortgage credit decision before you shop for your home. In fact, by using basic information such as your income, debt, assets, and employment history, they are generally able to get you a credit decision within minutes. They will guarantee credit approval of a certain amount, type and term. The approval is subject to an acceptable appraisal of the home you eventually purchase. If you wait to get approval, it will be required when completing your agreement of sale.
An Array of Choices
There are hundreds of financing options (although your financial specialist will probably only recommend a few main types). Weigh out the advantages of different loans such as a fixed rate mortgage vs. an adjustable one. Mendenhall Properties has developed a team of exceptional mortgage lenders that we are proud to partner with in helping you find your new home. Click here to see our team.
