Mortgage Pre Approval | Mortgage Qualification Checklist

mortgage pre approval checklist

We rely on the very best in our local real estate market to facilitate the most fitting mortgages for our clients. While plenty of cursory, online research can be performed, there's nothing that can replace a sit-down with a local mortgage lender who is invested in you. We asked our local partners to outline the most important 5 items you need to begin the mortgage pre approval process. Read on to be better prepared!

budget ceiling

Budget Ceiling

This one is fairly obvious, but oftentimes is the first rule of our five to be violated by the home buyer. Your budget ceiling should be governed by the same forces that guide your appetite, sleep habits, and ancillary expenses. When preparing to spend upwards of six, seven, or even eight figures, no matter how wealthy you are, it's fundamental to be prepared by establishing clear limitations you won't exceed. You budget everything else in life, so why let your lines be crossed on your largest purchase?

property type

Desired Property Type

Right along with your budget, you should certainly be aware of the needs of the property you're seeking. Depending on your family, or lack thereof, pets, and your intended use of the property, your decisions can be heavily altered along with the price point. That Florida room on your prospected 2/2 could be the perfect home office, yoga studio, or whatever else you desire. However, is it worth spending the extra $40,000 on the space if your sunshine and sliding doors are blockaded by excess storage and clutter? Know your desired property type before beginning the process.

the best mortgage loan programs

The Best Loan Program

No, differently than any other financial product, you should be aware of the best loan programs for you. If you're a veteran, for instance, do everything in your power to seek the many benefits that come as a de facto thank you for your service. Despite mortgage rates being traditionally low over the past few decades, your loan can dramatically impact your final costs throughout your mortgage. While it's always a scary prospect to forecast too far into the future, it's even worse to act as if current financial circumstances are permanent. The market, your bottom line, and the oscillation of interest rates across the financial products we utilize can impact your mortgage pre approval and post-qualification experience now and decades into the future.

the total down payment

Down Payment Total

Many lenders offer competitive mortgages and programs which advertise that no down payment is needed. Much like banks will advertise opening new accounts with a small cash bonus as the hook, mortgages that offer no down payment could be a valuable play, but often have major ramifications on the tail end that make a low or lacking down payment a poor short term compromise which could yield long term problems. On the inverse, a large down payment might make it simpler to pay down the principal over time but may be made by an overeager home buyer who leaves themselves cash strapped during closing time.

know your closing costs

All Closing Costs

Closing costs typically range from 3-6% of your home total. State by state, and situation by situation, closing costs can change but are often a collection of similar costs you can easily plan for. These costs can include underwriting fees, attorney fees, title insurance, appraisal costs, and property taxes. In 2021, the median home in Boynton Beach is $368,591. At 3%, this cost alone comes to over $11,000. Far too many first-time home buyers are neglectful of these sizable expenses that preclude the completion of your mortgage. Don't get caught napping on the back end of your deal!

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