Talking to a mortgage professional before you start looking for a home, even if you are just thinking about looking for a home, is a good idea. Why?
Your best strategy for going into the home purchase process is to get yourself in a ready-to-buy position. This is especially true as interest rates continue to rise.
You may have checked your credit score and discovered that it is great, but there is still more to the story, such as income and assets. It’s important to be on top of all aspects of your credit.
For example, you may be timely in making all the payments on your debt each month, but your lender may recommend that you pay down or pay off some of the debt to improve your debt ratios. This may take time, and the sooner you know what needs to be done, the sooner you’ll be able to start taking care of it.
This process is also important for setting your search parameters. The last thing you want to do during the home purchase process is guess what you think you can afford and get your hopes up on a property that may be a little (or a lot) out of reach.
Another variable to consider is your real estate agent. If you plan to work with one, he or she will want to see some type of pre-qualification letter. This lets the agent know you have the means to purchase a home and in what price range he or she should help you look.
Are you ready to start home shopping?
To get started on this preapproval process, contact your mortgage professional.