Buying Process
Mortgage Pre-Approval
One of the first steps towards buying a home is getting financially “pre-approved.” This process will identify the maximum sale price you are eligible to borrow. It is necessary to have when soliciting an offer.
The outcome of this process is a “pre-approval letter,” obtained by working privately with a lender. Receiving pre-approval does not obligate you to use him/her for your loan. However, during the buying process you will want to have a lender who you trust to work with you, as they can be a helpful resource.
Tips:
- Ask for the maximum price you can afford to spend on a new house. (Ask for the assumptions re property taxes, and assessments if applicable.)
- Pinpoint the amount you’re comfortable spending. Ask lender for sales price range given your objectives per month on housing expenses. (Consider mortgage payments, insurance, taxes, and assessments if applicable)
- Ask the lender, once you are ready to submit an offer, how quickly will they be able to give you a “pre-approval letter” Will you be able to reach them on the weekends as well?
- Ask for any special products / incentives that you may benefit from.