If you are looking for a new home, be sure you are preapproved. With a mortgage preapproval, a licensed mortgage professional can do a more complete verification prior to sending you shopping for a home, and with that done, the dollar figure you are going shopping with is actually what you can spend.
The mortgage professional that you work with to get preapproved will let you know for certain what you can afford based on lender and insurer criteria, and what your payments on a specific mortgage will be.
Licensed mortgage professionals can lock in an interest rate for you for anywhere from 60-120 days while you shop for your perfect home. By locking in an interest rate, you are guaranteed to get a mortgage for at least that rate or better. If interest rates drop, your locked-in rate will drop, as well. However, if the interest rates go up, your locked-in interest rate will not, ensuring you get the best rate throughout the mortgage pre-approval process.
In order to get pre-approved for a mortgage, a mortgage professional requires a short list of information that will allow them to determine your buying power. A mortgage professional will explain to you the benefits of shorter or longer mortgage terms, the latest programs available and which mortgage products they believe will most likely meet your needs the best, plus they will review all of the other costs involved with purchasing a home.
Getting preapproved for a mortgage is something every potential homebuyer should do before going shopping for a new home. A preapproval will give you the confidence of knowing that financing is available, and it can put you in a very positive negotiation position against other home buyers who aren’t preapproved.
Dean Bala is a mortgage broker and Realtor working out of the Creston Valley Realty office in Creston. For more information, he can be reached at 250 402-3903 or dean_bala@yahoo.com.