A pre-approval should be your first step before you start looking at homes. The process is quick, painless, and the advantages are huge.
First and foremost, a pre-approval will have you looking in the right price range. There is nothing worse than finding your dream home only to discover that you can’t afford it.
We go over what your monthly payments are, what your expected property taxes will be and what household expenses you are likely to encounter. For example, a couple may be able to afford a $450,000 home, but when they see the size of the mortgage payments, they realize that the debt load will make them “house poor” which may require them to undertake a complete lifestyle change. After doing a pre-approval the client may come to understand that perhaps a $350,000 home is more within their budget. However, this can also work in the other direction as well. That same couple might discover that the payments on the $450,000 home are well in their budget, and they may even look at homes in the $500,000 range by taking a different rate, term or amortization.
A pre-approval also helps you ascertain the amount and types of paper work involved in purchasing a home, the down payment required, and the timeframe to complete the purchase.
With our pre-approvals, we also offer a rate hold for 120 days, which means that if mortgage rates go down, you can obtain the lower rate, but if they go up, they will not increase for you during the 120 day period.
We have flexible hours during the day, evening and weekends. We recommend coming to our office for the appointment but if that is not possible we can make arrangements to meet you as well. Give us a call to see how we can assist you today.