Mortgage Pre-Approval: An Important Asset

Dynamic Markets Demand Mortgage Pre-Approval

One of the most intimidating aspects of the home buying process is the mortgage pre-approval process.  The Yuba-Sutter and Sacramento area real estate markets are dynamic to be sure.  Home values and interest rates can fluctuate significantly. As a result, what you think you can afford and what you can actually afford may be very different. If home values or interest rates go down, you may be able to afford a nicer or larger house.  If home values or interest rates go up, it can reduce your purchasing power. Thus, getting pre-approved for a home loan before starting your home search is important for many reasons.

When the market is moving quickly, having a mortgage pre-approval letter can be the key factor in securing your dream home, rather than losing it to someone else.  Sellers are more willing to let your agent show their homes when they know you have mortgage pre-approval.

Sellers Demand Mortgage Pre-Approval

Many people don’t think of the inconveniences a seller must tolerate when their home is on the market.  For example, sellers must keep their house tidy for showings.  Moreover, they frequently have to field phone calls from agents wanting to show it.  As our lives continue to get busier and busier, sellers increasingly ask agents to only bring qualified buyers to showings.

Pre-Approval Helps Buyers Avoid Surprises and Heartache

Here's a scenario I see all the time.  A buyer insists that getting financing will not be a problem and wants to skip straight to the home search.  After several weeks of diligent searching, they find the perfect home and absolutely fall in love with it.  They call a lender, who drops everything to do a quick credit check, only to find that the payment on the new car the buyer just purchased has increased their debt-to-income ratio.  As a result, they are now unable to qualify for a loan big enough to purchase the home they just fell in love with.  It's heartbreaking, and it happens all the time!

The Right Lender Makes Mortgage Pre-Approval a Breeze!

Now you understand how important it is to get pre-approved.  The process can be daunting though.  Determining which loan programs you may qualify for, or which type of loan at what interest rate is best for you can be nerve-racking. That’s why you should always work with a loan officer who is as experienced in the home-buying process as your agent.  You want someone with years of experience working with clients like you, who have purchased homes similar to the one you are seeking.

I highly recommend using a local lender who is familiar with the local market conditions and lending limits.  Lori Heikens at Cornerstone Home Lending is among the best in the business. She has an exceptional track record of helping hundreds of buyers close on their dream homes in a timely manner and with the best loan possible for them! Check out Lori's website and start the mortgage pre-approval process today.