Although we observed reluctant home sellers in February’s real estate market, the spring market tends to be very desirable for buyers because inventory is typically higher than other months. Sellers will wait to put their home on the market during the spring in order to grab the attention of as many potential buyers as possible. As a buyer this means that you will want to be prepared and serious about finding a home.

Before entering the spring market, it’s important to get pre-approved for a mortgage. When you are pre-qualified you will know how much home you can afford and what kind of payment you are comfortable with. Real estate agents will know you are serious about your home buying intentions and ready to buy which may provide leverage in the negotiation process, especially when there are multiple parties bidding for the same property.

What Happens During the Pre-Approval Process?

1. An experienced Mortgage Professional will ask you about your financial standing and needs, down payment, income, credit, and type of property you are hoping to buy.
2. Your Mortgage Professional will discuss the various mortgage options (fixed vs. variable rate, interest terms, payment options, amortization, etc.) available to you and which option best suits your needs.
3. Your Mortgage Professional will provide you with an application which will require you to provide details of employment, gross income, assets, down payment, and liabilities.
4. When you apply for a mortgage, we will request a copy of your credit report to determine your credit qualification.
5. Your Mortgage Professional will advise you about any other relevant documents to provide upon conditional approval of your mortgage.

Guaranteed Rate

You are under no obligation when you’re pre-approved to accept the mortgage, but you should still feel comfortable with the amount and terms of your pre-approved mortgage. When you are pre-approved for a mortgage you can lock in that interest rate which is typically guaranteed for 90 – 120 days. You can rest assured that if the rate drops, we adjust your rate for you, and you are protected if the interest rates should rise.

By discussing mortgage pre-approvals with your Mortgage Professional, you will have a good idea of what kind of mortgage payment you can comfortably fit into your budget.