We all have budgets. Grocery shopping, vacation planning, or buying a car all require us to reflect on what we would like and how much money we have to spend. When shopping for a house, your pre-approval letter is your budget. Why would you shop without one?
What is a pre-approval letter?
A pre-approval letter from your mortgage specialist tells us how much money you have to spend. Unlike a pre-qualification letter that is based on estimates you give a lender, a pre-approval letter is based on your specific information that you share with your mortgage specialist.
When should I get a pre-approval letter?
As soon as you decide you are ready to start the home buying process, you should start your search for a mortgage specialist and get the pre-approval letter. Getting pre-approved means submitting some financial paperwork which may take a bit for you to dig up from your files, so the sooner you get the process started the better.
What does the pre-approval letter mean?
The pre-approval tells you how much money the lender is willing to give you based on the financial information you provided. If something in your financial life changes, for example a new job, car, or credit card debt, this will impact your eligibility to get a mortgage. That’s why it’s always important to not make any financial changes without getting the advice from your mortgage broker first.
I’ve got the pre-approval letter, now what?
Now it’s time for you to find your home. Already having the pre-approval in place means that the moment you find a home you would like to buy, we can write up the offer immediately. There is no time wasted waiting for you to get pre-approved. Most sellers want to the pre-approval because it indicates to them that you are a serious buyer.
Are you ready to get a pre-approval letter? You can select any mortgage broker you would like. If you are not sure where to start your search, I can share some recommendations of brokers that my past clients have enjoyed using. In the meantime, I can set you up on a customized search to help you find your next home.
