Pre-Approval is Key to Getting the Home of your Dreams
As we roll into 2017, many homeowners turn their focus to selling their home and/or buying one. Spring is still the lead season for the housing market, which means competition for the home you seek will increase in the coming months.
How can you be sure you’re ready to get into the game and give yourself an edge over other home buyers?
Pre-approval for your mortgage loan is the first, and most critical, step to take.
When you take the time to get pre-approved for a mortgage loan, you can shop for your next home with confidence, knowing your real budget limits and how buying a home will affect your future finances. “It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets,’ says Freddie Mac.
Before you head to your local mortgage lender to fill out pre-approval documentation, check your credit report. There are several free and no-risk options on the web to get your current credit score and see a list of your open credit. Verify that the report and all it includes are accurate and contact vendors for any mi-reported issues like late payments or open accounts you had previously closed. Your credit score and history are significant factors to the interest rate you acquire for your loan. Knowing where your credit stands ahead of your pre-approval application can ease some of the stress of the process.
When you meet with your mortgage lender, the pre-approval process will review the following points, including your credit score:
Financial Capacity: Your current and future ability to make payments.
Capital Balances or Cash Reserves: Cash on hand, savings or investments that are liquid and can be used for use as cash.
Collateral: The kind of home, or actual property, you seek to purchase.
These criteria give your mortgage lender the insight into your financial health to ensure they acquire the best mortgage loan rates for you and ensure that your offer on your home of choice will not be hindered by the inability to gain approval for the mortgage amount.
Take the time to initiate the mortgage pre-approval process and arm yourself with the knowledge and support to achieve the home of your dreams.
Atlantic Home Loans, Inc. NMLS#15241 www.nmlsconsumeraccess.org 50 Route 46 West, Parsippany, NJ 07058 licensed or authorized Mortgage Lender/Banker by, and does not offer its loan services or products in any states other than, the following: CA Department of Business Oversight, CT Dept of Banking, DC Department of Insurance, Securities and Banking, DE Office of the State Bank Commissioner, FL Office of Financial Regulation, GA Dept of Banking & Finance, MD Commissioner and Financial Regulation, MA Division of Banks Lender/Broker MC#15241, NJ Dept of Banking and Insurance, Licensed Mortgage Banker—NYS Department of Financial Services, NC Commissioner of Banks Mortgage Lender, PA Dept of Banking, Rhode Island Licensed Lender/Broker, Virginia State Corporation Commission License MC-3001. Atlantic Home Loans is not acting on behalf of or at the direction of HUD/FHA or the Federal Government.