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.
In our previous blog, THE RIGHT MORTGAGE, you will find information on which is the right mortgage loan to choose.
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.