you had in mind. As I wrote earlier, “Your own assumption about what you can afford — both the down payment and the monthly mortgage payments, among other costs — can contrast significantly with what the bank is willing to lend you.” Getting pre-approved for a loan is also a fantastic method for gaining the upper hand in multiple-offer situations. A big part of presenting a strong offer is being pre-approved for a loan beforehand. If you and your agent come to the negotiating table confident, presenting a strong offer with a mortgage pre-approval letter in hand, you’ll already stand out from the other buyers interested in the same home. Again, make sure you have official pre-approval for a home loan before searching for homes, visiting properties, and placing any offer. Your buyer’s agent can help you in making sure everything is in order.
SHOPPING FOR A LOAN
For the majority of buyers, getting a mortgage is part and parcel of purchasing a home, simply because not very many people actually have the ability to pay for a house upfront, in full. If you’ve faced foreclosure, this is certainly going to be your situation.
Because lenders know this, there is a lot of competition out there — banks, mortgage brokers, and other mortgage lenders and companies vying for buyers’ business. Take your time researching and shopping for home loans and the best loan deal you can find for yourself and your situation. There are different types of loans out there, and it’s in your best interest to check out several of them, and then compare them. That way, you’ll have a better
162
Powered by FlippingBook