Absolutely!
Here's why:
1. You need to know how much home you can afford.
2. You'll be a step ahead of those who haven't been to a lender.
3. You have to do it at some point anyway...why not now?
4. It will increase your negotiating strength.
5. It will help you and the lender know which loan best meets you needs.
So...what will you have to show for it? You'll get a pre-qualification letter from the home lender. You can show it to the owners of the home you are interested in. That may well give you the advantage you need to compete successfully for the home of your choice.
Okay...what is a pre-qualification? The lender will take a look at your income and debts. Your employment. Your current residence situation. Your available funds for a down payment and required reserves. And some other things.
The pre-qualification will help you know how much of a monthly mortgage payment you can afford...and how much your loan can be. The pre-qualification requires a minimum of effort on your part but provides you with a valuable tool for your home search.
The pre-qualification or "pre-qual" letter assures the sellers of the home you want that you are serious. It shows that you have taken the initiative to prepare to pay for the home. It gives the home sellers confidence that you'll be able to get a loan and are not just wasting their time.
When you find a house that catches your eye, and you decide to make an offer, being pre-qualified for a mortgage will do a couple of things:
1. It lets you know how much you can offer. Your real estate agent can help you decide what to offer.
2. Being pre-qualified gives you the confidence to know you can "put your money where your mouth is". You'll have the clout of a buyer who is ready to make the deal right now!
Sooo...what are you waiting for? Get off the couch and take the first step in your search for that new home of your dreams! Go see a home loan professional.
For more details see the article by Mark Pendergast at Maker Capital Group
Kwik Kwote: "The problem is not that there are problems. The problem is expecting otherwise and thinking that having problems is a problem".
--Theodore Rubin
Know Your Real Estate: "ASSUMABLE MORTGAGE"...a mortgage that can be assumed by the buyer when a home is sold. Usually, the buyer must "qualify" for a loan in order to assume the loan.
To SEARCH FOR HOMES in the Cary-Raleigh area of North Carolina, visit the Triangle Estates Realty website. Or, email me at tim@timhaag.com. Or, for a no pressure chat, call me at 919-389-7135.
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