Thursday, April 21, 2016

Reasons You Should Get Pre-approved for a Mortgage


What is a mortgage pre-approval? In a nutshell, a mortgage pre-approval is written assurance from a lender or broker that you’re able to borrow money to purchase a home up to a certain amount. Rockland Financial will happily provide such a letter once we have had a chance review all the pertinent information.

So why should you get pre-approved:

1. Without it, most agents won’t work with you. Makes sense, too. Right? Think about it: when you hire an agent, he/she will invest countless hours showing you homes over the course of your house hunt. No one wants to spend valuable time showing you homes for $500,000 when you only qualify for $350,000 and vice versa why would you want to spend your time looking at homes out of your price range.

2. You’ll know how much house you can afford. Getting pre-approved before you begin house hunting allows you to know how much house you can realistically afford and thus allow you to focus your energy in the right direction. This kind of goes hand in hand with number 1.

3. It adds clout to your offer. That’s because pre-approvals instill confidence that the buyer is financially capable of purchasing their home. If a seller has multiple offers, which is fairly common these days, they will tend to lean toward buyers who are pre-approved. And why wouldn't they?

4. It saves time. Obtaining a mortgage is sometimes a lengthy process. Getting pre-approved ahead of time shortens the time between contract to close.

A pre-approval is so valuable because this means that Rockland Financial has actually checked your credit and verified your documentation to approve a specific loan amount and purchase price.

What you need to get pre-approved:

1. Proof of Income  (last 2 years of income taxes and W2s or 1099s)
2. Proof of Assets (proof of your down payment, closing costs & cash reserves)
3. Good Credit (low credit scores aren't a deal killer but expect a little hit on the rate)
4. Employment Verification (paystubs and verbal verification with employer)
5. Documentation (driver license copies and social security numbers)

These are just some basic items and overview of what to expect, the pre-approved link above has a complete list.

Contact me, I would be happy to walk you through all your options and answer any questions or concerns that you might have.

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