Wednesday, 12 February 2020
Ready to Buy? Pre-Approval will Help!

Now that we are well into the new year, many of you may be considering buying a new home.  Whether it is your first home-buying experience or not, let me offer you some tips to make the process a little easier!  With home inventories low, there may be more competition in your desired neighborhood.  Keeping this in mind, you want to take every opportunity you can to stand out from other buyers.  One of the best ways to do this is getting pre-approval from your lender.  This is a step that has become more important to most sellers in a competitive market where often times multiple offers are made on a property soon after the home hits the market.

Mortgage pre-approval is not a difficult process but does require a bit of research, time and of course, lots of paperwork!  This process shows sellers that you are serious about purchasing their home by being financially prepared before you ever look at their home.  If they accept your contract there may be some surprises but more than likely they won’t be caused by your personal finances.

To get the process started you will need to choose a lender you are comfortable working with because you will be spending some time with them and sharing quite a bit of financial information along the way.  They will look at your credit report and request copies of tax documents, pay stubs, savings and checking account statements or other documents for proof of income.  If someone is assisting you with a down payment, they may ask for a letter from that person stating the money is a gift rather than a loan that must be paid back to them at some point in the future.  They will also request information regarding your current debts to determine how much you can afford to borrow for your new home. 

Once they have completed the analysis of your income, assets and debts you will be given a price point to assist you in narrowing your search.  Pre-approval documents are generally valid for 60-90 days so you want to be sure you are ready to put a home under contract before you embark on the process if you don’t want to repeat it at a later date.  Also keep in mind that pre-approval is not a strict guarantee that the lender will approve you for a mortgage, especially if any of your financial circumstances such as changing jobs or acquiring additional debt occurs.  You also don’t have to get your mortgage from the lender who provided your pre-approval and might want to shop around to a second or third lender for a better rate if the first one is not satisfactory to you as the mortgage business can be very competitive.  Keeping these few tips in mind will help you be more financially prepared when you make the decision to buy a new home and as always feel free to reach out to me if I can help you in any way! #Doyouknowjarod 


..."You've Got a Friend in Real Esate"...


Jarod Tanksley 615.403.8265

Brentview Realty 615.373.2814

Posted on 02/12/2020 9:28 AM by jarod tanksley