After making the decision to invest in a new home, the excitement can be overwhelming. When you locate the right property, you will know it. Finally your dreams can become reality. It is important, however, to know how much you can borrow before setting your sights too high on a home that you cannot afford. Do not become disappointed before you get started, be sure you are pre-approved. With a mortgage pre-approval, a licensed mortgage professional can do a more complete verification prior to sending you shopping for a home.

The mortgage professional that you work with to get pre-approved will let you know for certain what you can afford based on lender and insurer criteria, and what your payments on a specific mortgage will be. A pre-approved mortgage is the sensible approach to buying your property. Lenders will guarantee a set sum of financing and the best rate available, based on your situation, for a set time period usually 90-120 days while you locate your dream home. However, if the interest rates go up, your locked-in interest rate will not, ensuring you get the best rate throughout the mortgage pre-approval process.

In order to get pre-approved for a mortgage, a mortgage professional requires a short list of information that will allow them to determine your buying power. A mortgage professional will explain to you the benefits of shorter or longer mortgage terms, the latest programs available, which mortgage products they believe will most likely meet your needs the best, plus they will review all of the other costs involved with purchasing a home.


Advantages:

 1. Many realtors require that you have a pre-approved mortgage before they start searching for your ideal home. This will help to ensure that your realtor shows you only properties that you can afford, and save both of you time in the house hunting process.

 2. If several buyers are interested in the same property that you are, being pre-approved can give you the advantage. Sellers are more likely to accept an offer from a buyer who has been pre-approved over a buyer who has no guarantee that they can attain the financing for the amount they offered.