How the Housing Market Drove the Mortgage Pre-Approval Push
Do you know why real estate agents want potential buyers to have mortgage pre-approval before looking for a home? There was a time when it seemed like banks and mortgage brokers were handing out money for homes like it was Halloween candy the day after Halloween. If you had a pulse, you could get a loan. In fact I personally know of several friends who were offered what they said was twice what they thought they could afford.
Fortunately, they didn't go that big, and they can still afford their homes. But that's not the case for everyone. Because of that, many folks have suffered when they couldn't keep their homes. That's why foreclosure rates are so high, and credit scores are so low. And that is a big part of what drove the current mortgage pre-approval push.
With so many people wanting to get back into homes, a lot of folks unfortunately don't have solid enough credit, or have too much debt or have too little income to afford the houses they want to look at. So now real estate agents want to make sure people talk to a lender before looking for houses. Imagine putting in hours of work to put together a portfolio of properties, and driving a client around to open houses only to find out they can't afford any of the listings. Instead, agents want to know you can buy a house they will show you.
Mortgage pre-approval means you can afford a certain house payment, you have a job that's stable that you can prove, and you don't have too much debt to be able to handle owning a home. You'll need to talk to a mortgage consultant to have your credit report pulled. You'll also need to be able to verify your employment, and be honest about your current debt. Once you have you're pre-approved for a mortgage, you can go out house hunting!
Get yourself pre-approved for a mortgage by clicking the button below and getting in touch with a mortgage consultant.