When people think of buying a house, they tend to focus first on the appearance of their dream house or what the property should have. If this sounds like you, you may have a list of requirements of what qualifies as the “right house,” such as a large master bedroom, a gourmet or luxurious kitchen, or a spacious backyard for the children.
It is easy to get preoccupied with what you want that you forget the things that matter the most. This especially true if you proceed to view homes without having an idea of what you can actually afford or borrow.
How Much You Can Afford
Before you start viewing houses, mortgage companies in Fort Myers suggest getting a prequalification first. This is to determine the amount of loan you can afford or borrow (usually an estimate) from a lender or a home loan company. Getting a prequalification can be as easy as meeting a lender for a quick meeting or talking over the phone.
Mortgage prequalification is not the same as pre-approval. If you are serious about buying a home, you can proceed with a pre-approval, which will require you to submit certain financial documents and complete a mortgage application. This will let you know the specific mortgage amount you are approved for, which can give you an advantage when making an offer or a bid.
Avoid Heartbreaks and Disappointments
When buying the right home for you or your family, don’t overlook any of these processes. Keep in mind that buying is a major financial commitment, so you have to make sure that you can afford the payments and all associated costs. Proceeding with viewing houses without knowing how much you can afford can only set you up for heartbreaks in the future.
Here is how a mortgage prequalification and pre-approval can help you avoid disappointments later on:
- You can know plan accordingly based on the amount of loan you qualify for.
- You’ll know the requirements or the things you can do to make yourself an attractive buyer and score better rates.
- You’ll know more about different mortgage programs that suit your situation.
- You can avoid being house poor by sticking to properties that meet your finances.
Don’t let the excitement of viewing houses make you forget what matters the most when buying a home. Meet with a reliable lender to know more about your loan options.