Once you decide to begin looking for homes, it is recommended that you get pre-approved for a home loan. While this may seem like an extra step you don’t want to take since you are “just looking” the truth is, getting pre-approved for a mortgage will save you stress and anxiety later in the process.
A mortgage broker is responsible for determining whether or not you may be approved for a mortgage loan. You take out your mortgage loan from a bank, which is known in real estate terms as your “mortgage lender” because they are lending money to the home owner. So, basically, the mortgage broker is the middleman between the lender and the mortgage applicant: you.
Your realtor should be able to put you in touch with a trusted, local broker. Once you talk to your broker, they will give you a list of financial documents that you must submit to them. This broker will call lenders and determine which types of loans you are qualified for based on your credit history. Different lenders may have different offers for you. After the offers come in, you will meet with your broker, who will explain your options and help you decide which loan will and will not work for your situation.
Knowing how much you are pre-approved for is helpful information to have before you begin looking at home. Knowing how much you can actually afford allows you to look for homes within your budget. This ensures that you will not overextend yourself by looking for homes that you may not be able to afford.
If you get pre-approved for a home mortgage, you will be taken more seriously by listing agents and the home seller. If you are live in a competitive market, you may need to put in an offer immediately after viewing a home. If you are not pre approved your offer will not be taken into consideration. Having a preapproval shows you as a responsible, ready candidate. Without this accreditation, your offer will be dismissed from the real estate race.
By getting pre-approved for a loan, you have already set into motion the required home buying steps. Therefore, once an offer is accepted you can immediately begin working with you broker to finalize paperwork. This is less work for you and for the broker, which typically speeds up the entire home buying process.
If you have any questions about finding a local broker, be sure that you send us an email. We are more than happy to put you in touch with someone you can trust!
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