Why Mortgage Pre-Approval Matters
As you have undoubtedly heard, we are in the middle of one of the best home buying opportunities of the last fifty years. Interest rates are still near historic lows, home prices are still very affordable and more sellers are beginning to list their properties. However, the comments released yesterday by Ben Bernanke, Chairman of the Federal Reserve, cause interest rates to increase yet again. Mr. Bernanke suggested that the Fed will begin tapering their mortgage bond purchases by the end of 2013 and may end the stimulus altogether by mid-2014. So what does this mean? It means that these record low mortgage interest rates will disappear very soon.
So why does mortgage pre-approval matter? By obtaining a full mortgage pre-approval with your credit, income and assets verified, you will be certain of the home price that you can afford and you will demonstrate to the seller that you will be able to close on the purchase of their home once the sales contract has been accepted. Some potential home buyers make the mistake of entering into a home purchase agreement with only a mortgage pre-qualification. A mortgage pre-qualification is much less thorough and binding than a mortgage pre-approval. To obtain a mortgage pre-approval, be prepared to provide your last two pay stubs, the last two years W2s, and your most recent bank and investment statements.
United Home Loans provides mortgage pre-approvals to potential home buyers in Illinois, Indiana, Michigan, Wisconsin and Minnesota. If you are interested in obtaining a mortgage pre-approval please call our office or click the link below to begin. Get Pre-Approved Today!