Mortgage Pre-Approval

The anticipation of homeownership is exciting, but you do not want to let your dream home slip away because of unforeseen financial circumstances. To purchase the home, you will likely need a mortgage, and applying for one requires more than just a signature. Attain your credit report well in advance before applying for your mortgage. A pre-approval for a mortgage helps you understand how much you can borrow before going through the mortgage application process. Think of it like a mortgage estimate that is free, saves you time by eliminating unrealistically priced homes and locks in an interest rate for a certain period.

You would not shop around for a car without having a budget and it should not be any different when it comes to buying a house. A mortgage preapproval should be your first step when you begin your house search, it is important to know what you can afford. This step can save you thousands of dollars, make your offer much more attractive and it can strengthen your position when negotiating. When you prove that you are qualified, your offer is taken more seriously compared to a buyer who has not been approved. Sometimes buyers compete for a home, and a pre approval can increase your chances of winning; it tells the seller you are serious.

In order to be pre-approved by a lender they usually require several items:

1. Proof of Employment for a length of time

2. Source of income usually from Income Tax or pay stubs

3. A recent credit check/history

4. An estimate of value on the home Monthly expenses, debts and assets

Take the first step in the right direction! Contact Alaa Yousif, Top Individual RE/MAX Broker