After months (or maybe years) of going back and forth, you’ve finally decided you’d like to buy a home! Great! So…now what? In NYC especially, the first thing you should do is get a pre-approval!
Your first instinct may be to go online to see what’s currently out there. But, you’re actually skipping over a very important first step. You need to get a clear picture of how much you can actually afford. It would be heartbreaking to find an amazing place only to be told by your bank that you are not qualified financially to buy it.
The first thing you should do once you’ve decided to buy a home is get a pre-approval from an NYC mortgage professional. After reviewing your personal financial information, your mortgage pro will be able to tell you the proper price range for your search and will be able to give you an idea of what kind of loan terms you could receive from lenders.
Pre-approval is not the same thing as pre-qualification. A pre-qualification is an estimate of how much you can afford in a mortgage payment based upon basic information you provide in an initial conversation. A pre-approval, on the other hand, is a commitment on behalf of the bank which includes a credit check and employment verification. A pre-approval is likely to be taken seriously by listing agents in NYC. A pre-qualification? Not so much.
Pre-approval is a must in today’s market for any serious buyer. Real estate in New York City now is hyper competitive, with lots of well qualified buyers (including all cash buyers). With all the options out there, sellers will not take any potential buyer seriously without a pre-approval, which gives them the security of knowing that you are financially qualified to make the deal happen.
Are you in need of mortgage broker recommendations? Do you have more questions about buying (or maybe selling) a home? Feel free to contact me. I’m always happy to help!
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