Mortgage Pre-Approvals a Must for Chicago Home Purchases
Going into the home-buying process is nothing short of a daunting task. It becomes even more difficult if the borrower does not know what they can afford, how much money to put down, or if they can even secure an approval. Knowing this information before searching for a home can eliminate a lot of questions and hassle down the road.
It today’s mortgage climate, underwriting is scrutinizing applications more than ever. For this reason, a pre-approval can prove to be an incredibly valuable asset when searching for the right home. One of the things it can do for a home-buyer is to narrow the focus on a price range for a home they’re looking to buy. For example, say you’re debating between two homes—one of which you could go without and the other one you must have—a pre-approval will help to narrow the focus so time is not wasted on pursuing the wrong home. Also, and perhaps most importantly, sellers love pre-approvals. A pre-approval to a seller is as close to a guarantee as one can get in the mortgage industry. With the seller hooked on you as buyer, your buying power increases significantly.
In the past most potential homebuyers would rely on a single credit score to determine their ability to buy a home, but now much more information should go into the equation. Pay stubs, tax returns, and liquid assets are just some of the additional information needed to accompany your credit score for a pre-approval. While this seems like a lot just to get a pre-approval, it is well worth the reduced stressed while looking for the right home.