Sort out your finances *before* getting pre-approved
If you are looking to restart your search for a home, it can be tempting to jump straight into getting a pre-approval. But you may want to spend some time sorting out your finances first, as it’ll give you a more realistic snapshot of what you can afford in a fast-changing market. Some areas to focus on:
1. Take a close look at your entire financial profile, including credit score, income, assets and debt. It’ll also give you a head start on collecting the documentation you’ll need to apply for a mortgage.
2. If you’re a homeowner already, first determine how much equity you have. Talk to a realtor about what to expect: What might your home sell for? How long will it take? Do I have to sell before I can buy?
3. For first-time homebuyers setting a budget, remember to factor in the additional costs of homeownership beyond your monthly mortgage payment. That includes things like home maintenance costs, insurance and property taxes, among others that are easy to overlook.
Taking these extra steps can set you up better for a successful homebuying journey.
– Robert Heck, Vice President of Mortgage @ Morty
Read more of Rob’s recent insights:
In case you missed it…
- When you’re ready to move forward with getting pre-approved, here’s everything you’ll need to know.
- Broker or lender? Here are the pros and cons of each, with guidance on when to choose one over the other.
- Stand out with speed. Eligible buyers can close in as few as 14 business days with Morty’s Quick Close Advantage.
Want to know what you can afford?
QUICK CLOSE ADVANTAGE