So, you’ve decided it’s time to buy your first home…
GREAT! It’s so exciting but also scary at the same time. Buying a home is a process that can seem overwhelming and confusing. Take a deep breath and relax. This is going to be fun!
A pre-approval letter is the very first step.
So many people are extremely reluctant to take that first step. Getting a pre-approval in no way ties you to any loan. Basically a pre-approval letter is a lender saying that with the current documents you have given them they will give you a loan. The mortgage broker will tell you how much of a down-payment you need, how much of a house you can afford and what your monthly payments will be. Guess what else? It’s FREE!
Any good Realtor should be able to give you at least a few mortgage brokers to choose from. I always recommend going with a good broker instead of a commercial bank.
“Isn’t going with my local bank easier? They already have all of my account info”
The short answer is NO!
Banks only have access to their bank’s specific loan programs. If halfway through the deal your loan isn’t approved they can’t offer you any other products other then the limited selection of the bank. A mortgage broker on the other hand has many options from many places. You often end up with better rates and more options through a broker.
I was recently in the middle of a deal and my client’s loan was not approved which surprised everyone including the broker. No big deal. At the last minute he was able to jump in and save the deal by getting my client a loan from a different source.
Once you have your pre-approval. Call me! It’s free to work with a Realtor as a buyer. The seller pays for all the commission.
Let’s get you in your dream house!
Things to Remember:
- When you’re ready to buy a home. Get a pre-approval letter.
- Pre-approval letters show you are qualified for a loan, without tying you to a specific loan.
- With a pre-approval letter, you will know your down-payment, how much home you can afford, and monthly payment.
- Get a pre-approval letter from a mortgage broker, not from your bank.
- Mortgage brokers have many more loan options than banks.
- Mortgage brokers will get you the best rate.
- If there is a problem during the buying process and your loan isn’t approved, a mortgage broker will help you find another loan.
- Working with a mortgage broker is FREE!