Buying a home can be a confusing process — so many steps! — but there’s one step you have to take before anything else.
That first step is getting pre-approved for a mortgage!
You may have heard about getting pre-qualified or pre-approved. You should know that they are very different things.
Both of those are related to your mortgage, but if you pre-qualify for a mortgage, that means a mortgage lender has given your finances a cursory look and determined you can probably get a mortgage for a certain amount. This is much less rigorous than a pre-approval, which means that a financial institution may give you a mortgage up to a certain amount.
To get pre-approved, you’ll need to provide a lot of documentation about your income, taxes, financial history, current debts and loans and other factors. But it’s worth it to go through the process because most sellers prefer that buyers are pre-approved, not just pre-qualified. Having a pre-approval means that you definitely know how much house you can afford, and that means that you’ll be able to shop for a new home with confidence.
In an age where there are sometimes bidding wars about a home, you don’t want to have getting pre-approved for a mortgage cost you time — and maybe cost you the home of your dreams! Get pre-approved before you shop.
If you have questions, remember that CommonWealth One is here for you, for life. Don’t hesitate to reach out to us for answers to any of your financial questions. Schedule a complimentary mortgage consulation today!
Happy house hunting from all of us at CommonWealth One!
