How Mortgage Pre-Approval Can Get You a Step Closer to Your Dream Home?
We all have a dream home planned about and wished for several times, or we at least have dream areas like, our back yard would be as such, or our master bed room would be as such , or we would have a mini library or bar of our own. But all along, deep inside our mind we always thought about the affordability too.
- Can You Afford Your Dream Home?
- When Will the Time Come?
- How Much Can You Afford Now?
What Should Be Your Next Step?
Buying a home simply requires an employment, savings equal to 20% of the value of the home and a good eye. If everyone with the above qualities owns a home today, then why don’t you? A Mortgage Pre-Approval is all you need to get a clue on how close you are to owning your dream home.
A Mortgage Pre-Approval takes all your details such as your credit score, your income forecast, your on-going debts and your down-payment capability to give you an estimate. This estimate answers on how big a home can you buy and at which mortgage rate.
Things You Need to Know About Mortgage Pre-Approval:
It is Estimated by a Lender:
Your Mortgage will be pre-approved by a lender in the market who estimated your borrowing capacity. This value and this rate is liable only by this lender. Another lender may see as less worthy or otherwise depending on his requirements. Hence, once your mortgage is pre-approved, you can seek homes at and around that value having in mind that all lenders may not have the exact opinion.
It Gives You Only the Current Capability:
Your pre-Approved Mortgage is valid only for a certain period after which you may not be able to secure the exact deal. The period usually lasts from about two to four months depending on the lender. This is because your mortgage depends on multiple factors such as the following and a change in any of them can put your pre-approval to revaluation.
- Change in Mortgage rates in the Market
- Decrease or Increase in Real Estate Prices
- Increase in Your Borrowings or a Decrease in Your Credit Score in spite of an increased Income