Should You Get a Pre-Approval When You Buy?

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Buying a home? Click here to perform a full home search Selling a home? Click here for a FREE Home Price Evaluation Today, we’re going to discuss the importance of getting pre-approved before you shop for your next home. We know the process isn’t sexy, but it is important to sit down with a mortgage professional and get pre-approved for your next home loan, unless you are paying cash. It’s also important that the right expectations are set from the beginning between you and your lender when it comes to what you want your monthly payment to be, and how that will affect your purchase price. A lot of people don’t see this correlation, but it’s extremely important we bring both of them into focus so they understand that when they want to purchase this home, this is what their payment will be. The other thing that’s dangerous is taking too much stock in the various mortgage calculators found around the web. Although they might be fairly accurate, they don’t tell the whole picture. Your monthly payment consists of many things, including your principal payment and interest, homeowner’s insurance, taxes, as well as mortgage insurance if your down payment is under 20%. How should you go about shopping around for a good mortgage product? Well, don’t start by calling mortgage companies and asking what their rates are. That’s just too inefficient. It’s also a question that is usually based out of fear. There are so many different types of mortgages out there, it’s really important you sit down with someone to determine what is the right mortgage for your given situation. Not all mortgages are created equal. The process of getting you pre-approved should be broken down into 3 parts: your credit, your income, and how much money you need to have. Finally, I get this question a lot, but no, FHA does not stand for “First Time Homebuyer Administration.” It actually stands for the Federal Housing Administration, the organization that grants FHA mortgages. If you have any questions for us, feel free to give us a call or send us an email. We look forward to hearing from you.

You can listen to Should You Get a Pre-Approval When You Buy? online on Radio and Podcast. Open the player on this page to stream the available audio.

Should You Get a Pre-Approval When You Buy? is an episode from Valley Wide Homes Real Estate Podcast with Craig Barton by Craig Barton.

The episode duration depends on the source podcast feed and may not always be available.

This episode was published on Oct 26, 2015.

Yes. Use the heart button on the episode page to add it to your favorite episodes list.

Yes. This page shows related episodes from Valley Wide Homes Real Estate Podcast with Craig Barton when more episodes are available from the podcast feed.