Fiduciary Fridays Arming Yourself To Buy A Home
This week Joe breaks down how to arm yourself when thinking of buying a home. Many home buyers make common mistakes. Watch this video, so you know what to avoid! Joe covers the 5 W’s of the mortgage pre-approval below. Looking to purchase a home? To view Joe’s latest listings click here!
What Is A Mortgage Pre-Approval?
A mortgage pre-approval, is the amount of money a lender (mortgage broker or bank) is willing to lend you in order to purchase your property. Things that are taken into consideration by these lenders are; your total income, your assets and debts and your credit score. Using this information, your lender advises you how much you can afford to spend on your purchase.
Who Need A Mortgage Pre-Approval?
Unless you are paying cash for the full cost of your home, EVERYONE looking to purchase a home needs a mortgage pre-approval. Joe insists on being pre-approved by a lender, even before beginning the buying process.
When To Get A Mortgage Pre-Approval?
As soon as you are considering purchasing a home, you need a pre-approval. It’s the first, and most important step in the buying process.
Where To Get A Mortgage Pre-Approval?
Contact your bank, a mortgage broker or for suggestions on where to get a pre-approval, contact Joe here. Shop around and see where you can get the best rate, with a lender you are comfortable working with.
Why Do You Need A Mortgage Pre-Approval
It is important to know how much you can spend when looking for a home. No one likes to waste their time looking at homes that are out of their price range. Not to mention wasting the time of the home owners, and the realtors showing you the properties. Furthermore, knowing you can spend more than you anticipated, may lead you to a more suitable home for your family.
Interested in learning more about the buying process? Read Joe’s tips on buying property here.
[…] Upon receiving this approval, the buyer then waives the condition in the offer and the agreement becomes “firm.” The buyer may be unable to obtain the financing approval. The buyers will then notifiy the sellers and the agreement is terminated. This can be avoided, however. It is recommended to get a mortgage pre-approval. See Joe’s Fiduciary Friday about How To Arm Yourself To Buy A Home […]