You wouldn't start shopping around to book a vacation without having a budget in mind. It shouldn't be any different when it comes to buying a home.
You may have convinced yourself that you can afford a home with a double car garage and a family room only to learn later on that it's not the case. Readjusting to homes that are less expensive is disappointing and takes all the fun out of the home buying process.
There are various tools on the Internet that can estimate what you qualify for but it’s best to visit a mortgage specialist for an accurate assessment. They can review your finances and check your credit in order to structure your application in the best light.
Most lenders will also place a hold on the current interest rate for a certain time period to protect you against rate increases. On a $150,000 mortgage, the difference between 5% and 6% is $87 per month or $5,220 over a five year term! Many buyers will leave this to the last minute and potentially miss out on the best rate. Don't be one of them -- make sure you're ahead of the game.
Working with a professional will also help you understand the various options associated with mortgages. Although interest rates are important, there are many other things to consider such as the type of mortgage (fixed/variable or open/closed) as well as the loan's duration. You’ll want to examine all the options to determine which one best suits your current and future financial situations.
Another advantage of mortgage pre-approval comes when it’s time to make an offer on your dream home. Unconditional offers are significantly more attractive to sellers and can knock thousands off the purchase price. In the case of multiple offers, it can mean the difference between getting the home or losing it. If you still need to make the offer conditional on financing, you'll at least be able to attach the pre-approval to your offer.
A mortgage pre-approval can save thousands of dollars and eliminate countless hours of stress. It can even prevent you from losing your dream home as you'll be in a stronger negotiating position. Getting pre-approved is easy, there’s no obligation and it doesn’t cost a cent. Contact a Turton Signature Mortgage Loan Expert today! Visit www.turtonsignaturemortgage.com.
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