Why Mortgage Pre-Approval Should Be The First Step When Buying a New Home

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Mortgage and Lending with Benchmark Mortgage NMLS# 247026

Buying a New Home? Here's Why Mortgage Pre-Approval Should Be Your First StepAre you thinking about buying a new house, condo or apartment? Whether you are upgrading, downsizing or investing, if you intend on borrowing the funds you'll need to be pre-approved for a mortgage.

In today's blog post we'll explore mortgage pre-approval and why this should be one of your first steps in buying a new home.

Pre-Approval Helps To Determine Your Budget

Do you know your budget? Mortgage lenders consider many factors when deciding how much they are willing to lend to a home buyer. While your employment status, salary, assets and credit rating are important, they are all pieces of a larger puzzle that help a lender to determine your risk. So regardless of how spotless your credit rating might be, you'll want to get pre-approved for a mortgage before trying to figure out your total purchase budget.

The size of your down payment will also be a factor in determining your overall budget. If you still have a bit of time before you're ready to buy a home, continue to put money aside for your down payment. The more you have, the less you'll need to borrow.

Once Pre-Approved You Are Ready To Make An Offer

Once you're pre-approved for your mortgage, you're ready to submit an offer for the home. Note that you do not need to bid high just because you are approved for a large mortgage. Work with your real estate agent to determine the right asking price for the home. Submitting a bid that's a bit lower than you're willing to pay leaves you with a bit of room in case the seller makes a counteroffer.

Many Sellers Will Demand Pre-Approval

Finally, don't forget that many sellers will require that you are pre-approved for mortgage financing before they'll accept a bid or offer. Many listings end up receiving multiple offers, especially those in hot real estate markets or popular communities. So if you table an offer without pre-approval, you may find that it is rejected in favor of another buyer who is ready to go.

Once you've been prequalified for mortgage financing, pre-approval is the final step in the process before you're ready to make an offer and purchase your new dream home. For more information about the pre-approval process, contact us today.

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Rainmaker
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Good morning Diane. Always best to get pre-approved before going shopping. Enjoy your day!

Dec 07, 2017 04:04 AM #1
Rainmaker
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Jim Cheney
Saint Francis Property Santa Rosa, CA - Santa Rosa, CA
Rincon Valley Realtor 707.494.1055

 Diane Beaumont that is so true! Not having a pre-approval tells the seller "I'm not really ready to buy your house".

Dec 07, 2017 11:32 AM #2
Rainmaker
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Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Great post and information for the home buyer to read. Thanks for sharing I hope you have a great afternoon.

Dec 07, 2017 12:36 PM #3
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

All good points Diane. It's important to know what you're working with before looking at homes. You run the risk of falling in love with a home you can't afford or qualify for.

Dec 07, 2017 03:03 PM #4
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Diane Beaumont

USDA,FHA,Jumbo,VA Woodland Park, CO Mortgage
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