Have you decided that this is the year you want to buy your first home? Maybe you are going to upgrade or move to a different part of the city. A rental property perhaps?
Before you start scouring the internet, get pre-approved!
A mortgage pre-approval will do a few things for you that could end up saving you a lot of stress and disappointment later on. The first thing it will do is give you a good idea of what you can afford. Your maximum purchase price will be calculated so that you do not end up falling in love with a house that you cannot afford to purchase.
The pre-approval will also lock in a mortgage rate for 120 days. This saves you from worrying about rising interest rates and free to focus on finding that house you have in mind.
It will also give you a chance to see if any changes need to be made prior to your new purchase. Maybe there is an error on your credit bureau that requires an update, or some credit cards that need to be paid off in order to make your qualifying ratios work – if you find these details out prior to making an offer on a house this leaves you plenty of time to make the changes and get everything in order.
There are nothing but benefits to doing a mortgage pre-approval. The pre-approval can then be extended as long as you like, everytime rates drop you’ll benefit from those as well – without even having to lift a finger.
Got a mortgage question? I have your answer!