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Tips for achieving your real estate Brentwood
dream home starts by getting Pre-approved

Tips for achieving your real estate Brentwood dream home starts by getting Pre-approved

If you’re looking to buy a dream home in Brentwood,  it’s important to get pre-approved for a mortgage before starting your search. Working with a local real estate professional is a great way to get the assistance you need with this process. 

fix the sentence At Freddie Mac, they explain why it’s important to get pre-approved before house hunting: it can help you move faster and with greater confidence in competitive real estate markets like Brentwood.

See some of the  detailed explanations and walk-through below:

What is Pre-approval

A pre-approval from your real estate lender indicates that they are willing to lend you a certain amount of money to purchase your future home. The lender you choose will give you a pre-approval letter, which is an official document that states the maximum amount they are willing to lend you based on certain criteria.

It is critical to remember that pre-approval does not guarantee approval. The appraised value of the real estate home you want to buy in Brentwood, your loan type, and your income, assets, and debts, for example, are all details that will be verified later in the process and will affect how much you can borrow and whether you are approved for a loan.

Here are some benefits of  Pre-approval in real estate

  1. Real Estate Pre-approval gives you an advantage when making an offer on a home. It shows the seller that you are a serious buyer and that you have the financial means to purchase the home.
  1. Real Estate Pre-approval can help you determine your budget and narrow down your search for a home.
  1. Real Estate Pre-approval can help you avoid costly mistakes, such as overspending on a home that you can’t afford.
  1. Real Estate Pre-approval can help you secure a lower interest rate on your mortgage loan.
  1. Real Estate Pre-approval can help you move quickly when you find the right home.

How Do I Get Pre-Approved?

After you’ve compared multiple lenders and decided on one, you can apply for pre-approval by completing a loan application. To complete the application, you will most likely need to provide documentation such as your W-2, bank statements, credit report, and tax returns. These documents will assist the lender in determining your financial ability to make timely payments.

 

Based on the four C’s: capacity, capital, collateral, and credit, your lender will review your application and determine how much you may be qualified to borrow. If your lender believes you qualify for a loan, they will issue you a pre-approval letter outlining how much money they are willing to lend you.

It is important to note that you can and should speak with multiple lenders before committing to a pre-approval amount. Take the time to find the lender who will make you the best deal.

What Should I Do Now That I'm Pre-Approved?

Remember that the pre-approval letter from the lender is the maximum amount they are willing to loan. You should only borrow an amount that you are comfortable paying back. Pre-approval letters are usually valid for 30-90 days, so plan your homebuying timeline accordingly. To get the most out of your home-buying experience in buying your real estate dream home in  Brentwood, visit Homes By Krista to learn more…