Get a Mortgage Pre-Approval
An important ingredient in a successful home search is knowing how much you can afford. You don’t want to fall in love with a property only to find out it’s outside your price range.
That’s why I recommend getting a Mortgage Pre-Approval. This is a document from your bank or other lender stating how much of a mortgage they are willing to give you. There are two advantages to getting this pre-approval:
- It gives you the peace-of-mind of knowing you can afford homes you view on the market, and won’t have problems arranging financing.
- It’s a sign to sellers that you are a serious, prepared buyer – which gives you the edge when making an offer.
You can arrange for a Mortgage Pre-Approval with your bank or other lender, or by working with a good mortgage broker. Always get a second opinion when shopping for a lender since this is possibly the biggest financial investment you will make in your lifetime. I can also highly recommend a reputable broker or lender, please contact me.
Get Your Finances In Order For A Cash Purchase
When you decide that you want to purchase a home with cash, I recommend you speak with your financial advisor. You need to make sure the down payment money can be easily accessible with a short time after placing an offer. No matter where you gather the funds from (in which documentation will be needed upon offer for the full purchase price) you will also want to make sure you are aware of any tax ramifications on your money or early withdrawal penalties.
How Much Home Can You Afford?
Banks and lenders use specific criteria to determine how much of a mortgage they’re willing to offer you. They look at your income, expenses, credit history and employment status, as well as the down payment you plan to make on a home. It may seem like a scary process, but it is actually straightforward. You can usually get a Mortgage Pre-Approval in a day. You’ll be glad that you did.
By knowing what you can afford, you can confidently shop within that price range. Do not forget that whatever mortgage you are qualified for you also must ask the taxes that number is based off of. More often lately, I see buyers qualified but were never told the amount of taxes that they need to stay below. This is problematic when you start searching. The difference in taxes can certainly disqualify you from an offer price. This is just another of many important facts I will explain when we meet in person.
Have questions about arranging financing? Please submit the form below or call or email me.