Pre-approvals benefit both buyers and sellers in a real estate transaction. Here’s how.
Today we’re joined by Josh Martinez of Legacy Mutual Mortgage to talk a little bit about pre-approvals and why they benefit buyers and sellers.
If you’re a buyer, getting pre-approved (i.e., submitting your financial documentation to a lender) should be your very first step in the home buying process because, essentially, it makes you a better buyer. If you work with Legacy Mutual Mortgage to get pre-approved, they’ll take you through the underwriting process up front. Other companies prefer to wait until you’re under contract for a home to do this, but that can put some of your money at risk because there are deposits involved.
At Legacy Mutual Mortgage, they’ll pre-approve you while you’re shopping for homes. Once you’ve gone through the underwriting process, your buying power increases and you’re almost guaranteed not to run into any financing issues once you are under contract for a home.
If you’re a seller, dealing with a pre-approved buyer gives you peace of mind because you know you’re that much less likely to run into any issues getting your home sold.
Now, in particular, is a great time to buy because interest rates are so low. Traditionally, the Federal Reserve decides when interest rates will rise or fall, but this doesn’t always affect mortgage rates. Nevertheless, it’s been quite some time since rates were this low, which means you can secure a lower monthly mortgage payment and save money over the life of your loan. Just a 0.25% drop in rates means your affordability can increase by anywhere from $20,000 to $50,000.
We don’t know when rates will rise again, so now’s the time to take advantage of these conditions.
If you have any mortgage questions for Josh, you can give him a call at (210) 913-2255. As always, if you have any other real estate questions for us, don’t hesitate to reach out to us as well. We’d love to speak with you.