Importance of Pre-Approved Mortgage. Looking for a house can be very exciting, and in your haste to start looking, you may immediately want to reach out to a real estate agent to get the ball rolling. Who doesn’t want to get straight to the “looking at houses” part of the process, right?
However, you may be forgetting one very important step. That is getting in touch with your mortgage banker for your mortgage pre-approval. I’ve had a lot of people getting in touch with me to go look for properties without first getting a pre-approved mortgage. So, why should you get a mortgage pre-approval first?
New products –
Mortgage companies are always coming up with new products and different mortgage. That is their business and they can help you get into houses. As mortgage rules change, they are always making new products to help you meet and find your goals.
You may be surprised by the valuation you can get by getting in touch with mortgage brokers. It is always a great idea to have a discussion with them first. Tell them what you are looking for and the goals you have concerning the house.
If you have plans on renovating the property, say, adding a basement or maybe an alcove or an extended room, bring it up as early as the pre-approval stage because they might just have a different mortgage product for you and your specific plans for the property you are eyeing. They might come up with ways to help you refinance depending on your plans for the property.
No pre-approved –
Mortgage means not being able to make an offer – Getting a pre-approved mortgage is essential to being able to actually make an offer on a property with the help of your chosen real estate agent. They are the ones who will approve your credit worthiness, after which we can look for a house to make an offer on. The mortgage company will be the one holding the power to let you make an offer since they will be the ones attaching your pre-approval to the property to help ensure that it’s a match.
Whoever holds the money holds the key. This is how I like to explain it. It is important to note, however, that where mortgages are involved, there is an important difference between banks and mortgage brokers. Banks can only sell the products that they offer. Mortgage brokers on the other hand can help you shop around for different lenders and give you a range of options on different mortgage options they provide.
It may feel like the end of the road if a bank says no to you, but fear not! It would still be of value to you to connect with a mortgage broker who can help you with your pre-approval needs. Another thing to note is that if a certain mortgage broker is not able to help you achieve your goals, you can always definitely consider getting in touch with another one who may come up with different options and solutions for you.
Not all mortgage brokers are created equal, the same way not all realtors are created equal. This is why it can be beneficial to make connections who can help you get to the end goal you desire. If you find yourself needing help with mortgage pre-approval or are looking to connect with mortgage brokers to help you with it, don’t hesitate to get in touch. I have made connections and maintained working relationships with some mortgage brokers throughout the years, and I can help you connect with someone who can have just the right options for you and your mortgage needs.
This way, we can look for houses not just for the sake of looking at them, but we’ll be able to look for properties and make an offer which can ultimately get approved.
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