The fine way to shop for a house is always 100% cash. This might sound a little crazy, but for some it is possible and ideal to save some money. If that’s something you cannot afford then you will need a mortgage loan.
How to get Pre-approved?
A lender will have a conversation with you about your income, assets, and down payment and get you pre-approved to buy a property based on your information. Getting preapproved takes a bit greater work. A lender will want to verify your financial information and submit your loan for initial underwriting.
Taking the time to visit a mortgage lender is totally worth it because a preapproved letter shows sellers you are serious about buying a house. When you have made the decision to buy a house, you want the process to go as smoothly as possible. You want the most help you can get.
It is recommended that you get a mortgage payment that is not bigger than 25% of your monthly income. The last thing you need is to crush your homeownership dream the minute you can’t afford to pay your bills.
By getting pre-approved for a mortgage loan you will know how much you can afford to spend on your future home.Make sure to stick to what you can afford, if you are shopping with a partner ensure you are both on the same page as far as how much to spend.