TOP 5 REASONS TO GET PRE-APPROVED FOR A MORTGAGE

Is it really important to get pre-approved for a mortgage

before you start viewing homes?

I can't count the number of times a potential buyer has said something similar to one of the following things when I first meet them...

        *    "I just want to look at some houses...getting a mortgage is not going to be a problem." 

        *    "I have an uncle who works at the bank and he said not to worry about it."

        *    " I talked to a lender 2 years ago, I am sure I will be okay."

So why should you get pre-approved

before you start viewing homes? 

Here is our Top 5 Reasons!

1.  Avoid Heartbreak - Not much is worse than finding your dream home and then finding out you can't get a mortgage for the price of the home.  Getting pre-approved will not only tell you how much of a mortgage you qualify for, but also how much you are comfortable spending.  


2.  Plan Your Down Payment - There are lots of loan programs available, each requiring a different down payment and costs associated with obtaining the mortgage.  Getting pre-approved will help you plan for those costs.


Photo by ilovebutter

3.  Credit Surprises - The credit reports used by most mortgage companies are different than the report you can get online.  Getting that report from your lender early will give you time to correct any mistakes on your credit report or even fix thing to improve your credit score. 

4.  Increase Your Negotiating Power - With the uncertainty in the economy and real estate market, sellers want to be assured that you can afford their home before accepting your offer.   Many sellers will not even consider your offer without a pre-approval letter. 

5.  Don't Delay Your Offer - The basic terms of your financing need to be contingencies of your offer.  In Maine, the purchase and sale offer includes...

type of loan

% of purchase price

interest rate

loan term

closing cost needed by seller

If you have to wait to meet with the lender after you find your dream home, another buyer could negotiate a contract before you are able to gather the information you need to make an offer. 

Buying a home can be stressful.  Proper planning, including a pre-approval will make the process smoother and more enjoyable.  If you have questions or would like to schedule a consultation with a buyer agent, we are happy to schedule a meeting.  Call us at (207)784-3800 or e-mail us at brenda@fontaineteam.com.