You’ve found your dream home, and you’re ready to make a offer. You’ve got the cash (or you think you do), but there’s one last thing: getting pre-approved for a mortgage. As per Real Estate Agency Ferntree Gully the good news is that once you get pre-qualified, getting approved for a loan for a house can be as simple as filling out some paperwork—and it won’t cost anything!
But before we start the process together, let’s talk about what you need to know about getting pre-approved and how it affects your future ability to buy a house.
Not getting pre-approved.
Getting pre-approved is the first step in buying a home. It’s a simple question: “I am looking to buy a house. Can I get pre-approved?” The answer is usually yes, and if it isn’t, then there’s something wrong with your credit score.
For example, if you’re planning on getting married soon and have been married before (or even just had an engagement ring), then that could potentially lower your score by about 100 points—which is huge!
The good news is that getting loan pre-approved will allow you to find out exactly how much money you are willing to spend on housing and whether or not this house would be within their budget.
You’ll also know what kind of mortgage rate they offer (and therefore which ones would be best) so negotiations by Real Estate Agency Ferntree Gully can begin sooner rather than later when starting negotiations with lenders over refinancing options as well as down payment requirements, etcetera.
Not accounting for homebuying costs.
The cost of buying a home can be high, so it’s important to keep an eye on your budget. Here are some things you’ll want to consider:
- Loan application fees: Most banks and lenders charge a fee when they approve your loan application. This varies by lender, but most ranges from $50-$200. You can also pay this fee with cash or check if you prefer not to use credit cards or debit cards (this may attract additional interest).
- Loan origination fees: These typically include processing services as well as appraisal fees for appraisals performed by an independent agent or real estate agent prior to closing on the property being purchased. They also include title search charges which allow sellers’ agents/clients to run independent checks on properties listed for sale through public records databases.
Compromising on your needs.
- Don’t compromise on your needs.
- Don’t compromise on the size or location of a house you’d like to buy. It’s important to be realistic about what can be provided for you in terms of space so that when it comes time to move in and start living there, everything feels right for everyone involved.
Poor timing.
There’s a lot to consider when buying a home as per Real Estate Agency Ferntree Gully, but timing is especially crucial. You have to understand the market and know when you can afford it. If you’re in an area that’s booming with demand but where prices are rising quickly and rapidly, then buying now might be too expensive for your budget or timing.
But if prices are levelling off or dropping slightly in the short term (but still increasing overall), then now could be a good time to buy!
It’s also important to know what kind of home will work best for YOU—and whether it’ll fit within YOUR budget as well as meet YOUR needs/wants/dreams…so listen carefully and ask questions about things like location, floor plan layout/size requirements etcetera along with price point vs other comparable properties nearby so that everything comes together nicely once all pieces get put together later down the road by the way no matter what happens between now & then.
Conclusion
As you can see, there are a lot of mistakes that you can make when buying a home. The most important thing is to do your homework and research before you make any big decisions. It will save you time, money and stress down the road!
