This is the third part of our series on buying a new home in the Vail Valley. In our last installment, we discussed searching for your new home. This week, we’ll discuss the importance of being preapproved for your mortgage.
Imagine: You’ve been checking out homes with the Rocky Mountain Home Team, and you just found your dream home. The price has been negotiated and seems fair. Already going over your decorating plans in your head, you rush off to the mortgage broker – only to find you can’t get approved for a loan.
Have you ever forgotten your wallet, and not realized until you’re standing at the cash register? It’s like that … only much, much worse.
Fortunately, it doesn’t have to be that way. By choosing a qualified lender and obtaining preapproval prior to your purchase, you will…
… know in advance what your payments will be.
… NOT waste time considering homes you cannot afford.
…be able to select the best loan package without being under pressure. There are many options and programs to choose from in today’s market. Your lender will explain the alternatives to help you select the one best suited for you.
… have an estimate of your closing costs . (We will explain them to you in detail.)
… have peace of mind.
Also, sellers usually find offers to purchase more favorable if they know in advance that the buyer has the ability to secure financing. This makes your offer more competitive if you are in competition with other offers.
Finally, most listing agents – that is, the real estate agent working on behalf of the home owner –will require a pre-approval letter to accompany all purchase agreements. This makes sense, if you think about it. The listing agent has simply advised the homeowner not to waste time pursuing offers he or she cannot be sure of, in order to prioritize more credible offers.
Need help finding a qualified lender? The Rocky Mountain Home Team can help! As a part of our consultation, let us know you’re looking for a lender. We’ve worked with several lenders over the years, and will happily assist you in finding the one that’s right for you.
In our next installment, we’ll discuss making an offer on a home.