Getting preapproved is an important step in your road to owning a home. It is an opportunity to meet with a lender, review your financial situation, and determine what home price works for you. The best lenders (we can provide our recommendations) will walk you through your monthly payments, how much money down you will need, what type of loan is ideal for you, etc. (Did you know that YOU may qualify for a loan, but the home you are interested in may NOT qualify?) Getting your preapproval in order, making sure your lender has the paperwork he/she needs, will take time, so do this step sooner than later. This will also help when you are in competition when writing an offer. In this fast-moving market, the more prepared you are, in advance, the better!
Once you are approved, STAY preapproved! That’s right, what you do AFTER preapproval is just as important as what you did beforehand. Keep paying your bills on time. Resist new credit card applications or using your credit cards overall. Don’t make any large purchases like cars, vacations, even furniture, that may push your credit.
Finally, if you were preapproved months ago, now is a good time to take a fresh look at your information. For some buyers, lack of inventory has extended their home search. Talk to your lender about your specific situation. Has your job changed? Have interest rates adjusted in your favor? Do you still have the full down payment amount (or did that go to something else by now)?
Congratulations on being one step closer to buying your next home!
by Kristin Beise, RE/MAX Advantage Plus