Why should I get pre-approved? | Monday Minute November 16, 2020

If you want to purchase a home, having a pre-approval along with your offer, shows sellers that you are serious about buying a home and they know you can afford it. Without this, you could be passed over in favor of someone who already has a lender with funds lined up.But do I really need to get this before I go out to look for a home?Yes. For a number of reasons.To figure out how much you can affordHow much of a down payment you will needAnd whether or not you are credit worthy enough to move forward with a purchase.This will save countless time during the house hunting process to know that the homes you are considering are practical and within a comfortable range.I always tell my clients you may be able to afford more than you actually want to spend monthly. And just because you ran the numbers on the online mortgage calculator, that doesn’t mean that is what you will pay.Interest rates are based on so many factors, which is why they say, rates as low as.Because depending on your credit score, debt ratio and money in the bank, that rate may not be as low as the advertised rate, and that can make a big difference in what you are going to spend monthly.