Mortgage Information from The Palm Beach Real Estate Pros at Lanosa Realty

Mortgage Prequalification and Preapproval

Why should you get prequalified and then preapproved for a mortgage before you even begin searching for a home? Because there are three people who will benefit from you being preapproved: You, your Agent and the seller from you will eventually purchase a home!

You are of course the most important beneficiary. One of the most common questions we receive is, “How much house can we afford?” Because of the multitude of variables it is nearly impossible for us to answer that question. The only sure way of getting the answer is through prequalification. The mortgage prequalification process is relatively simple, but it is very important.

By knowing exactly what your financial parameters are, your Agent will be able to focus completely on finding you a home that meets your need.

If you want to be able to strengthen your bargaining position with the seller, or make your offer stand out among multiple offers, you need to get prequalified. If a seller has two offers, one from a fully prequalified buyer and one from a buyer who is not prequalified, they will likely devote more attention to the prequalified buyer, possibly even if their offer is lower.

You should remember that the amount of the mortgage you will qualify for is the maximum that the lender feels you can afford, but not necessarily the amount you should spend. It is often in your best interest to be conservative, so as not to push yourself too close to your limit. Be sure to factor in increases in monthly expenses such as maintenance or utilities and remember to allow for necessary items that you may need to purchase, like furniture and window treatments for example.

Lanosa Realty specializing in Palm Beach Homes, Palm Beach Condos & Luxury Country Clubs in Palm Beach Florida.