Should you talk to a mortgage professional before house hunting?

Absolutely! Even if you haven't so much as picked out houses to visit yet, it's important to see your mortgage professional first. Why? What can I do for you if you haven't negotiated a price, and don't know how much you want to borrow?

When I pre-qualify you, I'll determine how much of a monthly mortgage payment you can afford, and how much you can borrow. Keep in mind this may be much more (or less) than you are actually willing to borrow.  I do this by considering your income and debts, your employment and residence situations, your available funds for down payment and required reserves, and some other things.  It's short and to the point, and we keep the paperwork to a minimum!  If there are some "issues" with getting a lon, we'll address them and put a plan in place to correct any issues that may be preventing you from buying a home or from borrowing as much as you need. 

When you are ready to buy, we'll take things a step further and actually go through the pre-approval process.  This typically involves presenting your application to an underwriter and/or submitting your information electronically to the appropriate "electronic" underwriter.  Once you are approved, I will give you what's called a Pre-Approval Letter (your real estate agent might call it a "pre-qual"), which says that we are working with you to find the best loan to meet your needs and that we're confident you'll qualify for a loan for a certain amount.

When you find a house that catches your eye, and you decide to make an offer, being pre-approved for a mortgage will do a couple of things. First, it lets you know how much you can offer. Your real estate agent will help you decide on an appropriate offer, but being pre-approved gives you the confidence to know you can follow through.

More importantly, to a home seller, your being pre-approved is like you walked into their house with a suitcase full of cash to make the deal! They won't have to wonder if they're wasting their time because you'll never qualify for a mortgage to finance the amount you're offering for the home. You have the clout of a buyer ready to make the deal right now!

You can always use the calculators available on our site to get an idea of how much mortgage you can afford -- but it's important to meet with me. For one thing, you'll need a Pre-Approval Letter! For another thing, I may be able to find a different mortgage program that fits your needs better.