Why Should You Get Pre-Approved When Buying in Southern California?

Southern California Mortgage and Finance

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In recent years, mortgage guidelines have been tightened and documentation requirements have been expanded and followed more closely. But does this mean it's more difficult to secure a mortgage? Getting a pre-approval can help you avoid the potential pitfalls long before you become obligated by a contract of purchase.

There are a handful of specific advantages once you're pre-approved. Once you have a pre-approval in hand, you'll be certain about the price range that's right for you, how much cash you'll need to close, and what your maximum monthly payment will be. Understanding your limits will help you negotiate with confidence - plus, since sellers like a sure thing, you'll have an advantage over other buyers in the marketplace.

Your approval is typically valid for the shelf life of the documents used to obtain it. These include a credit report, pay stubs, bank statements, W-2s, tax returns, etc. The usable life of these documents will vary, but it's usually safe to say your approval is good for up to four months. During this time, it pays to file all the important financial documents so they're readily available for future updates.

It's completely acceptable to change your mind. There's no obligation to purchase a home or use a particular loan program once you've been pre-approved. In fact, pre-approval simply helps you to know exactly what's involved in the buying process. Purchasing a home is much easier if you have financing in place before you make an offer.

We're always here to help you get started, and it's never too early to do just that. Give the Alex Caragiannides Team a call whenever you're ready!