It’s that time of year. New couples are thinking about that first home together but should you speak with a Mortgage professional first?
Absolutely! Even if you haven’t so much as picked out houses to visit yet, it’s important to see your mortgage professional first. Why? What can we do for you if you haven’t negotiated a price, and don’t know yet how much you want to borrow?
When we pre-qualify you, we help you determine how much of a monthly mortgage payment you can afford, and how much we can loan you. We do this by considering your income and debts, your employment and residence situations, your available funds for down payment and required reserves, and some other things. It’s short and to the point, and we keep the paperwork to a minimum!
Once you qualify, you’ll have a Pre-Qualification Letter (your real estate agent might call it a “pre-qual”), which says that you qualify for a certain amount.
When you find a house that catches your eye, and you decide to make an offer, being pre-qualified for a mortgage will do a couple of things. First, it lets you know how much you can offer. Your real estate agent will help you decide on an appropriate offer, but being pre-qualified gives you the confidence to know you can follow through.
More importantly, to a home seller, your being pre-qualified is like you walked into their house with a suitcase full of cash to make the deal! They won’t have to wonder if they’re wasting their time because you’ll never qualify for a mortgage to finance the amount you’re offering for the home. You have the clout of a buyer ready to make the deal right now!
With today’s FHA and USDA RD, many people who have never before qualified may for the first time be able to buy that dream home!
You wont know unless you ask 🙂