Spring is here and although there is no sign of green grass and daffodils just yet, the real estate market is in full swing. Spring has always been recognized as the height of the real estate season. People buy homes all year long but sellers often try to list in the spring to take advantage of this high time.
Whether you’re ready to buy or just starting to look it’s important to understand what a home mortgage pre qualification is and here are 5 great reasons to pre qualify today.
1. You Need To Know What to Look For – A lot of people start their home search without knowing how much house they can afford. Determining how much you can spend on a monthly payment is a good start and you can use a Monthly Payment Calculator to get closer to that number. But there is a lot of factors that contribute to your pre qualification amount. To determine your home mortgage pre qualification amount your loan officer will take into consideration your credit score, income, debts and assets. These numbers will tell you the loan amount that you can qualify for which will help narrow down your home search.
Taking the time to pre qualify can save you time and heart ache if you fall in love with a home that is out of your budget. The more realistic you can be from the start, the more successful your search will be.
2. You Want To Be Ready – When the real estate market is busy it can mean that properties can come off the market as quickly as they went on. If you set foot into the home of your dreams you want to be ready to make an offer that you are confident in. Having that pre qualification letter at the ready gives you the power to act on a house in your price range that you want to buy. Waiting to meet with a loan officer after you find a house delays your offer and leaves time for more potential buyers to see the house and potentially make an offer first.
3. Get Educated on The Process – When you apply for a home mortgage the process takes time. You should not sign a purchase and sales agreement that gives the lender less then 45 days to pull together the loan product for your purchase. Taking the time to sit down with a loan officer before you make an offer on a house will help you manage the timing in advance. There is nothing worse then feeling pressure while trying to buy a home and leaving adequate time for everything to come together is an important piece.
4. Weigh Your Real Estate Options – If you are just starting your home buying process the options available can be very confusing. If you are still considering buying a condo vs. buying a house, your loan officer can help you understand what you can afford in either type of property. A single family home will typically have higher taxes and higher insurance costs but a condo will have a monthly condo fee that needs to be covered. It is important to know what each type of property does to your budget. Getting this information early will help you make a very educated decision about your home purchase.
5. Knowledge Gives You Confidence – A home mortgage pre qualification is one piece of the real estate puzzle that gives you confidence in your buying power and educates you on what to expect and how to prepare for the rest of the process. Getting a mortgage requires a lot of documentation, tax returns, pay stubs, bank statements and more. Getting organized early will help the process go more smoothly.
The bottom line with the real estate process is that the more you know going into it, the better off you’ll be. Consider making an appointment with one of our loan officers to discuss your real estate options and determine what your home mortgage pre qualification looks like. We are here to help you get into the home of your dreams!