In this buyer's market with uncertaining lending conditions, it's really a good idea to get pre-approved. Standards for debt to income ratio's have gotten more stringent, and if you are at all leveraged, best to know what you can qualify for. Read this simple list below of eight benefits of pre-approval. Aloha from Kauai...
1. Interest rates are usually locked for a set period. Getting pre-approved will let you know in advance exactly what your payments will be on offers you choose to make.
2. You won't waste time considering homes you cannot afford.
3. You can select the best loan package without being under pressure.
4. Most seller's require a pre-approval letter along with the contract, so it will make your offer more enticing.
5. You will have an estimate of total closing/purchase costs along with their explanations.
6. You will have the opportunity for your mortgage broker to explain the different financing alternatives and help you select the one best suited for you.
7. You will be able to accurately guess your monthly mortgage payment including principal, interest, private mortgage insurance (PMI), taxes and escrow.
8. Since you have the pre-approval step completed, your real estate agent will have ample time to discuss home styles, availability, location, schools and any specific features you desire.
Don't find the perfect house and then realize you can't afford it! Get pre-approved today and start looking for your future home. Contact Brad Papa if you have any questions or what to start your home buying journey!
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Ron Margolis, RA, CDPE, ABR Hawaii Life Real Estate Services 808.346.7095 email: firstname.lastname@example.org