Jason Peatz – Mortgage Associate

Step #2 – Get Educated and Pre Approved

June 30, 2009 11:02 am Jason Employed Persons, First Time Home Buyer, Pre Approval

The next key step for a person getting a mortgage is to Get Educated and Pre Approved.

Education

You are going to want to get educated about is the process for getting a mortgage. By understanding this process and what is needed through each part you will be able to be better prepared and feel quite comfortable as you go through the entire process.

Each of us is different. Each property is different. So it makes sense for us to try and figure out who you are and in turn what is the best way for you to move forward in the mortgage process. It gives us a chance to mitigate any issues that maybe present in your file. So in this case it is critical for us to get educated about you and what products are best suited for you.

The mortgage process is all about being prepared so we do this by ensuring that everyone is educated on the process and your situation.

Pre Approval

With the Pre Approval that the lender will send to your mortgage broker you will be able to shop for your new home with some real confidence. You will be sure of what you can spend and that it fits into your budget. This in turn helps your Realtor or builder because they feel confident in showing you places that are within your price range.

Interest rates can fluctuate quite a bit over time. Be getting pre approved you will be secure in the knowledge that if rates go up within a specified period of time you will get that great rate. If interest rates drop then you in turn will get the lower rate. It is really a no lose proposition.

If you take possession of the your home outside of the time period of your pre approval most lenders will do a “look back” to determine what the lowest rate was in the past for the same period. In other words if you have a pre approval that is good for 4 months but don’t take possession til 5 months has passed the lender will look at the previous 4 months and give you the lowest rate available during that period.

Pre Approvals are also really great because sometimes they are needed by the builder to put a property on hold for new buildings.