Learn How to Get Mortgage Pre-Approval Easily
However, with interest rates at historic highs, many home buyers are wondering how to get the best possible deal on a mortgage before they commit to getting pre-approved.
In this post, our team at Your Home Sold Guaranteed Realty – Phil Aitken Home Team will break down how to get mortgage pre-approval in Nocatee, Florida. We’ll also cover a few ways you can potentially lower your interest rates.
What Is Mortgage Pre-Approval?
If you’ve never bought a home before, you may be unfamiliar with mortgage pre-approval. Mortgage pre-approval is exactly as the name sounds– you visit a lender to get pre-approved for a home loan amount.
Getting pre-approved shows that a lender has verified your financial situation and that you’ve secured a specific loan amount. Once you get pre-approved, you’ll receive a pre-approval letter showing how much you’ve been approved to borrow.
This letter is beneficial to the home seller because it shows you have serious intentions about purchasing the home. The seller knows they won’t be wasting time considering your offer because you’ve already taken the crucial step of securing financing in advance.
As a result, they’ll be much more confident in you. In fact, your pre-approval status could be the deciding factor between you and other home buyers.
But mortgage pre-approval also benefits you as a home buyer in the Nocatee, Florida, housing market. When you get approved for a specific loan amount, it makes it easier to stay within your budget while you shop for homes.
You’ll also have an easier time budgeting the other financial aspects of the home-buying process, such as appraisal fees and closing costs.
How to Get Mortgage Pre-Approval in Nocatee, FL
The first step to getting mortgage pre-approval is getting your financial documents in order. You’ll need to show proof of your:
- Proof of income
- Debt-to-income ratio
- Employment verification
You can use bank statements, W-2 forms, and pay stubs to prove these things. Once you’ve gathered all your information, the next step is to meet with a lender. You can either go directly to a bank, credit union, or secondary market lenders like Freddie Mac and Fannie Mae.
You can also work with a mortgage broker, who essentially serves as a middleman between you and the banks, and can help you compare all your options.
Based on the financial information you provide, the lender will let you know what loan amount you qualify for. This includes how much of a down payment you can expect to make and what the interest rate will be.
Don’t be afraid to shop around and visit several different lenders to see if any of them offer better deals than the others. You can also negotiate with one lender if you know there’s a second lender willing to offer you a better deal.
3 Ways to Navigate Rising Interest Rates in the Current Housing Market
With interest rates at highs of just a little over seven percent, many home buyers wonder if there are any ways they can avoid paying so much in interest. Ultimately, you can’t change the interest rates. But there are a few tricks you can use to decrease how much you pay.
First, you can save up and make a larger down payment. This will leave you with a lower principal amount. As a result, you’ll pay less interest since the amount of interest is based on how much principal you have.
Another option is to buy mortgage points. Mortgage points are fees that you pay to your lender in exchange for a lower interest rate. One point is equivalent to one percent of your mortgage.
Depending on how much your loan is and how long you plan to live in the home, buying mortgage points can be a great way to save money in the long run.
Lastly, another way to navigate rising interest rates is by using an adjustable-rate mortgage instead of a fixed-rate one. Adjustable-rate mortgages are generally better during turbulent housing markets.
This is because they offer an initial fixed-rate period for the first several years that comes with a lower interest rate. After this fixed period, the rate begins to adjust.
Starting out with an adjustable-rate mortgage to ride out the challenging market and then refinancing to a fixed-rate mortgage when terms are more favorable may be a good way to help you save money when buying a home in Nocatee.
Our Team Can Help You Find a Lender in Nocatee, FL
Want to learn more about how to get mortgage pre-approval in Nocatee, Florida? Our team of experienced realtors at Your Home Sold Guaranteed Realty - Phil Aitken Home Team, can help you out.
We have a network of lenders that we recommend who can help you figure out the best mortgage deal for you based on your desired home. On top of that, our real estate team offers several buyer’s guarantees that make the home-buying process as risk-free as possible.
Our realtors have successfully helped thousands of home buyers find their dream homes in Nocatee, Florida, and we know we can do the same for you.
To learn more about working with our team, give us a call at (904) 544-5252 or fill out the form below. We look forward to helping you find the perfect home!