November 6th, 2008
Home Buying Tip: The Importance of Mortgage Pre-Approval
Getting pre-approved for a mortgage is a great first step in the home buying process, but the amount you get approved for should not always be taken as your perfect spending amount. Often times, the amount you are pre-approved for is based off of monthly payments that might be outside the range that you are prepared to pay. Especially in our current economy it is prudent not to set your budget based on your maximum mortgage approval level.
This is very important to understand and should be considered before you take a pre-approval mortgage amount and use it as your budget. Make sure that the terms included in your mortgage approval are acceptable to you, meaning you feel confident that your mortgage payment works in your personal budget.
In addition, a mortgage pre-approval can save you from future credit or legal problems. Don’t make the mistake of making an offer on a home you cannot get approved for or cannot afford. Breaking a contract can be difficult and costly especially if the seller takes the home off the market based on your contract.
Making an offer on a home when you are pre-approved for a mortage puts you in a strong negotiation position which is important in today’s buyers market. Sellers are much more likely to negotiate if they know the potential buyer is serious and is pre-approved for the mortgage.
Getting an accurate mortgage pre-approval and making offers based on what fits within your budget can save you money, time and insure your credit history is not damaged.
Be smart and meet with knowledgeable REALTOR and mortgage lender. Skye Bruce Properties, The Official REALTORS and Buyer’s Agents of RichmondHomeShopper.com has a support team industry experts including mortgage lendors. Contact them today!
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