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Heritage Hot Topics: Questions about pre-qualifying to purchase a home? Please respond to Heritage Properties' Blog....
"Encouraging Potential Home Buyers to obtain Pre-approval with a mortgage lender prior to viewing homes"
If you are considering purchasing a home, when you call a Real Estate Professional on a particular listing that you have seen that peaks your interest, don't be surprised if one of the first things the Professional asks you is if you have been pre-approved by a mortgage lender. There are several reasons why this is the first step in purchasing a home, itemized below. If you have questions concerning this, we encourage you to submit your questions by responding to this blog.
1) It is important that the amount that you are approved for by the mortgage company also matches your comfort zone regarding house payments including principal, interest, taxes and insurance.
2) The approved purchase amount will help gauge what homes we search for within a $10,000 range, over or below the amount that you are approved for.
3) The mortgage company will establish with you how much cash you may have on hand for downpayment or closing costs and pre-paid items. It will be necessary to know this when we prepare an offer to purchase and contract for you, especially if the amount needed according to the good faith estimate exceeds what you have on hand; if this is the case, then your agent will need to know to prompt you to ask for the seller to pay part or all of your closing costs, up to the amount that the lender will allow.
4) If you do not know your pre-approved amount prior to viewing homes, you could be disappointed if you find a home that you like, and then discover that you are not pre-approved for that amount.
5) Most sellers when receiving an offer on their home, will be insisting on seeing the pre-approval letter attached to the offer.
6) It is an agreement between Realtors through our multiple listing service, and an obligation to sellers, that we will only show clients homes that have been pre-approved.
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