It's finally time to find the home of your dreams and make it a reality. Wait just a minute and think things through about how to get that dream home. You could go to see all the homes for sale in your favorite luxury neighborhood and choose from them, then attempt to find a mortgage company that will finance it. That might work in your favor, but you also might get turned down because you didn't get approval faster than the other buyers.
Avoid the situation altogether and go house hunting prepared to offer on the spot. Don't lose the luxury home of your dreams because you went house hunting before you went mortgage hunting. Come prepared to place an offer on the table when you find that home of your dreams. Having a pre-approved mortgage offer letter
will open many more doors than hunting for a home empty-handed.
Pre-approved loan details
You don't walk into a grocery store without a budget in mind how much the food and necessities should cost and how much you have available to spend. Buying a home should be no different in the financial realm. Avoid the difficulty and hoops that are on fire by getting a pre-approval
from the mortgage company you'd like to deal with before searching the real estate websites and papers for the perfect home.
Knowing exactly how much your mortgage will be for a set purchase amount lets you see if you really can afford to purchase the home you want, so long as it fits the pre-approval requirements. This will not only help you reduce the possible homes to look at by price but allow you to view what your future budget will look like once your purchase and move are complete.
Remember, if you are currently renting and moving into a new and larger home, the mortgage will not be the only monthly bill to change. Keep an eye out for changes in the utilities and maintenance of the property.
Know what price range you can afford
Being excited about looking for a new home is one of the best parts of house hunting. However, you could be in for several heartbreaks if you do not shop around for a pre-approval before looking through the homes for sale.
For example, you know you want a house with five bedrooms and at least three bathrooms. You begin looking through the websites, ads, and papers in the location you would love to live. The luxurious front lawn, spacious living area, and glorious pool pull you into this perfect place. More than enough space for the entire family to be comfortable and still have their own space, but just small enough that cleaning won't be too much trouble. It's perfect.
You didn't get the pre-approval before you went to view the home; you fell in love and just must have it. Now you are faced with trying to finance the house, and there is another buyer interested. The mortgage companies take too long to approve the loan, and you are outmaneuvered by the other buyer. Your next choice is to offer a higher amount, which the mortgage company says will not be acceptable, or look for another place.
If you had shopped around for the best pre-approval for your situation, you could have placed the offer on the home before the other buyer even saw the place. Finding your buying power is as easy as getting your pre-approval and knowing your loan's limits.
Pre-approved only house showings
Sometimes buyers want to be assured that when they open their home, potentially while they still live in it, the people viewing the home will have the power to place an offer on the home. It saves the sellers the trouble of being inconvenienced for a showing if the only buyers allowed to view the homes are the ones with up-to-date letters of pre-approval.
If you do not have a pre-approval letter to present to your real estate agent, you could be left out of some of the best houses on the market. Sellers are interested in getting their property sold, not just displaying the property for others to view without being serious about purchasing.
Present sellers with a low-risk option
All sellers are interested in is selling their property quickly and for a decent profit if possible. A buyer who walks in to view a home or search through the real estate office's listings without a pre-approval letter isn't seen as a serious and ready purchaser.
Let the sellers know you are ready to do business now rather than a month or more down the road by getting the pre-approval. A seller may stop taking offers if your serious offer, backed by your pre-approval, is acceptable to them. Your letter lets them know that there is only a slight chance that something will happen between their acceptance and closing to thwart the current deal.
Pre-approvals turn into mortgages
Being prepared to offer on a home means that there is enough financial backing or pre-approved funds that you can offer to the seller and close without too much trouble. This is where a pre-approval assists you as a purchaser. Homes that meet all the pre-approval requirements can quickly close and turn into a mortgage note.
The quicker funds are approved and able to be transferred, the easier and faster you can be in your new home. A real Estate agent can assist you with the final details that the mortgage company will require for the final loan process to conclude and funds to be disbursed. On top of your down payments, remember that there are lawyer fees and closing costs with every house purchase. It will be up to you and the seller to determine who is paying for the final costs.
Faster closing process
Getting to the closing of a house purchase means that you have gotten past the pre-approval and received the full mortgage papers necessary to transfer the property. Congratulations! For many, this day brings joy the likes of which they have waited for years. You would have been waiting far longer if you did not get the pre-approval.
In the process of obtaining that pre-approval, you have already shared your financial, personal, and situational information with the lender. They would have already done a quick check into your credit ratings and income-to-debt ratios. Once the home is chosen, the house's information, cost, and value will be introduced into the already collected information to form a final option.
This means that you already collected, copied, mailed, or emailed all the relevant personal information to the mortgage company for their approval before you searched for the perfect home. All that the mortgage company is waiting on is your down payment and the house's information to loan you the funds for the purchase. This can cut a few weeks from the process.
Work with real estate agents with experience
Getting a pre-approval before house hunting does not have to be a job you do alone. Reach out to a reputable real estate company like The Byrne Group
so that they can assist you through every step in the process. Not everyone knows exactly how to start the home buying process in Boulder, Colorado
. Some buyers have more difficulty looking for the perfect houses for sale in Boulder County without someone to help guide them through the process.
A real estate agent can point you toward some local and/or reputable mortgage companies their clients have had success with in the past so that you can get your pre-approval process started. Then they can work within your mortgage company's numbers and your desires to search through their databases to find a few homes that may interest you.
After that, it is up to the real estate agent to assist you through showings, inside knowledge, and location knowledge to find your perfect new home. Once one is settled on, they will begin the process, providing you and your mortgage company the financial information, scheduling appraisals and inspections, and making sure the seller is amiable to the purchase.
Once that is completed, the agreement is usually made through the seller's real estate agent, then a closing agent or lawyer will have the contracts drawn up and finalized for signing. Once signed, you will get your home's keys and be able to move in within the time agreed upon. Lastly, your real estate agent will stay connected with you to make sure that everything is as you desire it to be.
Trust The Byrne Group
Kevin Byrne and his team of real estate agents have over 30 years of experience in the Boulder and Denver market and can get you to the home you desire quickly. The team is constantly ranked as one of the top real estate teams in Colorado, and their drive to meet their client's needs is how they make it happen. Contact Kevin Byrne real estate
today to get in touch with your expert real estate agent that can assist you from pre-approval through to receiving your keys and beyond!