A mortgage is a loan you take which you have to repay over a specified period of time with fixed or variable interest rates. When taking a first time home buyer mortgage or a commercial mortgage, most people start shopping for the property without getting an estimate of what the can and cannot afford. This leads to them being disappointed and upset when they find out that their dream home is way beyond their budget. So, how does one prevent that? With a mortgage pre-approval!
What is a mortgage pre-approval?
The procedure of getting an estimate of the approximate amount of mortgage you are likely to be eligible for is called mortgage pre-approval. This involves the appraisal of your credit history and finances with an experienced financer. It takes into account your credit rating, your debt to income ratio and your current inflow statements. It is important to keep in mind that this is only an estimate and the original amount may be a little less than what was estimated.
How can a mortgage pre-approval benefit you?
When you are looking to buy a house, there are quite a lot of options available and the one which strikes a chord with your heart, may not be the one which falls within the tight bracket of finances you are capable of giving. A pre-approval can help you understand your current budget and plan accordingly. It can narrow down your search to a smaller number so that you have to worry about noisy neighbors and not insufficient finances!
Getting your mortgage pre-approved doesn’t mean that you are simply made aware of your budget. It can provide other benefits as well. When a seller looks for a buyer, they usually search for two things: seriousness and capability. Having done a pre-approval of your mortgage will make the seller see you as a low-risk buyer. They may take you as someone who is serious about buying the house and will not back out of the deal for financial reasons. This could even give you a competitive edge over other buyers who may offer higher amounts. The reason being that you are aware of your finances and will definitely be able to pay the stated amount. It could give you the leverage you need in heated battle for the house!
It allows you to plan your finances as well. When you have an estimate of the budget, you can plan out other things as well. In cases where you are looking to buy and remodel a house, you are going to need a higher budget. This can help you really get an insight into your finances and understand what you can do with it.
Since you have a pre-approval for your mortgage, you will be aware of what you can get. You can keep the amount as foundation and try to find better rates. Or let a mortgage agent search the right rates for you with ease.
How does VPMortgages help you?
With VPMortgages on your side, you are guaranteed an experienced and professional service throughout your mortgage journey. The Mortgage pre-approval process is detailed and simple with us. We have the expertise to get you a near accurate mortgage approval and help you get the rates you deserve with that in hand. We can manage to get you better offers also. All we require is your trust. VPMortgages focuses on your needs and takes the time and effort to understand them. We deliver on our promises and ensure that our client is always satisfied with the results they get. VPMortgaes is the right place to commence your mortgage voyage!