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Always Get Pre-Approved

Blog by Century 21 Amos Realty | July 12th, 2012

We've had a few new home buyers in the office lately and the same question keeps popping up.

Why do I need to get pre-approved for a mortgage before I look at homes? 

So we thought there may be others out there asking the same question. This is why you need to get pre-approved.

The reason we ALWAYS suggest you get pre-approved before you look at homes is because you don't actually know what your price range is unless you do so. This does not apply to those that don't need mortgages. Some people already have the money available and in that case, do know what their price range is. However, if you don't have the money available you will most likely be relying on receiving a mortgage from the bank. 

If you are relying on a mortgage to finance your transaction, you can't guarantee how much you will be approved for until you become pre-approved. There is nothing worse then starting to look at homes and finding out that you have been looking out of your price range. After that happens, it is hard to go back and start looking at less expensive and probably less extravagant homes. 

In a nutshell, to avoid having a potential bad experience while looking to purchase a home, go get pre-approved! 

To get pre-approved you can have 3 options:

1) Go to you local bank and speak to a mortgage specialist about getting pre-approved. They will ask for the financial information for everyone who will be on the mortgage and get you approved. Ask for the lowest interest rate. If you know what other banks are offering, ask if they will offer the same rates...if they aren't already.

2) Go around and speak to the banks you'd like to work with and see which one will offer you the best interest rate with the best mortgage. This can be time consuming but some people prefer to do it this way. 

3) Contact a mortgage broker. Mortgage brokers contact all different banks to get you the best interest rate, mortgage, and amount as possible. They do all the work and you don't have to pay them to do it. The banks pay them for providing clients. But they do work for you and try to find you the best mortgage available with your individual situation. Not everyone can get the same mortgage. It depends on your credit history, financials, job situation etc. 

You can do any one of these options and get pre-approved. Depending on the bank, but in most cases they will hold your interest rate for 90 days. This gives you time to find a home and not feel rushed into a transaction.

If you have any questions or would like us to refer you a mortgage specialist at a bank you work with or a mortgage broker, we would gladly do so. We work with them on a constant basis and only refer the best!