You’ve decided; it’s finally time to buy your dream home! Congratulations. Investing in real estate in any form is a wise financial move, but buying your own is home is an extra special experience.
You’re not just buying a house, you’re buying a community to complement your lifestyle and a place to make lifelong memories with your loved ones. There are so many things to consider when buying a home.
One is the mortgage. The majority of homebuyers need a mortgage in order to actually purchase their dream home. If you’re buying a home in a competitive real estate market, like Westfield New Jersey, getting pre-approved for that mortgage is vital.
I’ve seen many clients find the home of their dreams, only to miss out on it because in the time they were waiting to get approved, somebody else swooped in.
The Pre-Approval Process
The lending officer will review your credit score, amount of debt, current income level, and all other aspects of your finances. This process is generally done when you are applying for the loan, but can also happen before you submit a formal application.
Here are the 2 main reasons why you should get pre-approved for a mortgage before you start your home search.
It Will Help You Set Your Budget
Becoming pre-approved by a lender is essential to setting a budget, because it lets you know how big of a loan they are willing to give you. It also gives you an idea of how much you can afford to spend per month for a mortgage payment.
This is a great start, but it shouldn’t be the only thing helping you set your budget. Take a good look at your annual income and expenses. Then, determine how much you can comfortably spend in a month on a mortgage payment.
Pre-Approval Makes You a More Competitive Buyer
Sellers, and real estate agents, will give pre-approved buyers priority over other buyers. So, if you put an offer down on your dream home and you’re already approved for a mortgage, the seller will take you more seriously.
Having an edge like this as a buyer in the Westfield market is essential to buying the best home for you in a timely manner.
Any Other Questions? Contact me!
I would love to discuss your pre-approval options with you in the home buying process. Feel free to use my mortgage calculator to help determine your home budget.
If you ever have any questions about the home buying process, please don’t hesitate to reach out to me! I would love to help make your real estate dreams a reality.