A mortgage pre-approval is a letter from a lender letting you know how much of a loan you qualify for after looking through your financial history. It’s important to note that pre-approval is not a loan commitment, but it’s important because it does help speed up the loan approval process when the time comes for underwriting (after the downtown Boston condo is put under contract.)
This is important because now you know what you’re working with. Many times Boaron condo buyers spend days, weeks, and even months looking through websites searching for Boston real estate for sale they’re not sure they can afford. There is no problem with searching on the web, but more often than not buyers will want a Boston high rise condo they can’t afford. You need to know where you stand in the home buying process. Getting pre-approved avoids all heartaches and time searching Boston real estate for sale, that you can’t afford.
In a competitive market, which is hot right now in downtown Boston, obtaining pre-approval letter will always work in your favor. If you do not have cash on hand for an all-cash purchase, the pre-approval will show the seller that you are serious. Homeowners/Seller want to know that you have some kind of financing lined up, and they’ll want to see proof. In most cases, offers without pre-approval are rejected. You don’t want to be on this boat.
All of this being said it is important to shop multiple lenders before you start your Boston condo for sale search. Never go with just the first lender, since different lenders will have different requirements. This way you can compare the all in costs and get the best deal. Please note that in this situation credit is very important. Credit can easily affect something such as your down payment amount. This is why getting pre-approved is extremely important and highly recommended. If something negative in your financial history pops up.. It gives you time to fix those errors and improve your credit score.
I hope this gives you some clarity as to why you should get pre-approved. If you’re considering buying a Beacon Hill condo or a modern high rise condo in Midtown or Seaport District and have any questions please feel free to contact me by completing the form below
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