Why should you get pre-approved?
Before you begin searching for a new home, you need to determine how much you can afford. You may be able to afford more or even less than you think based on your income and the amount of down payment you have.
By getting pre-qualified BEFORE looking for a home, you’ll save yourself time, energy, and frustration because pre-qualification:
* Determines How Much Home You Can Afford *
Pre-Qualification helps you avoid buying less home than you can afford or being disappointed if you don’t qualify for as much as you had hoped for.
* Shows You What Your Down Payment & Closing Costs Will Be *
You’ll know approximately how much money you will need for your down payment and your closing costs before you sign a contract.
* Lets You Know What Your Monthly Payment Will Be *
You’ll have a general idea of what your monthly principal, interest, taxes, and insurance payment will be, and if you’ll need mortgage insurance.
* Identifies The Loan Programs You Will Qualify For *
With the wide variety of loan programs available, it’s important to know which types you qualify for and which will best suit your needs.
At this point, the lender can also help you determine alternatives and strategies that could help you buy the home of your dreams. These may include:
* Special first-time home buyer programs * Low down payment programs
* Co-mortgage financing * Debt consolidation assistance