If you’re planning to buy your first home, it is easy to get preoccupied with thinking of what you want your dream house to look like. You might also find yourself browsing or looking at home listings online and then falling in love with a certain property.
Becoming attached to a certain home, however, can only set you up for heartbreaks and disappointments later on. Mortgage companies in Lake Oswego such as Primary Residential Mortgage, Inc. note this is especially true when a lender tells that you cannot afford it during the home loan application process.
Consult a Lender First
One of the best things you can do as a first-time home buyer is to see a reliable lender. This is to find out how much house you can afford, as well as the loan options best suited for your financial situation. By arranging your financing first, you can be in a better position with sellers.
You can also avoid the stress associated with sorting out the home loan too late.
Get a Pre-Approval
It is also important to note that many sellers favor or prefer buyers who have received a mortgage pre-approval. This is not the same as pre-qualification, which is only a starting point to know what you can afford.
Pre-approval means that the lender has checked your credit and verified your documentation enough to approve a certain mortgage amount.
Assess Your Comfort Level
A pre-approval will let you know the maximum amount you can borrow. It is important, however, to evaluate your level of comfort carefully when paying for a house. It is not always advisable to reach the peak of your spending ability just to get a decent home.
In many cases, it is better to aim for a more affordable loan amount to avoid financial hurdles in the future.
When you’re approved for a specific amount, this gives the seller peace of mind that you can afford the purchase if they decided to accept your offer. You will then have an advantage over other buyers who do not have an approved financing at hand.
Contact a lender now to learn more about pre-approval and the mortgage process.