Do I need a mortgage pre-approval?
In a word, yes.
A pre-approval can help you avoid these issues:
· Credit Problems
During the process the mortgage broker will pull your credit and credit score. It’s not uncommon for your credit score to vary widely from credit bureau to credit bureau. Another common problem is errors on the report itself, which will need to be disputed. It can take a few months to get problems corrected and the score readjusted.
· Not Knowing All the Costs Involved
It’s not as simple as having a down payment. There are many costs associated with buying a home from paying an entire year’s homeowners insurance upfront to title fees. A pre-approval will outline these costs so there will be no surprises down the road.
· Multiple Offers
The market is tough right now, with properties often receiving multiple offers. If you don’t have a pre-approval and financing in place, your offer will not be considered against offers that do have financing readily available.
Obtaining financing is one of the most important steps in the buying process. Since there are many different mortgage products, all with their own guidelines, it’s important to work with a mortgage professional. We have trusted mortgages brokers we can refer you to and will help you get the best mortgage for you.