Most home buyers need to finance their purchase with a mortgage. Unfortunately, many don't realize they should obtain a mortgage preapproval before they seriously look for a home. Sellers today usually insist on seeing a preapproval before negotiating the sale of their property.
I'm working with a couple now that had an idea of the price of the home they could purchase, but found a home they wanted to look out before getting a mortgage preapproval. They loved the house, but needed a preproval to make an offer. They obtained a preapproved, but found that they can only make a very low offer on the home. They may get lucky and the seller may accept their offer; but, they were looking for homes above their price range. I fear they will be disappointed.
To avoid disappointment and wasted time looking at homes above their price range, buyers should get a mortgage preapproval before shopping for a home.
A mortgage preapproval does not lock a buyer into a specific mortgage company. Buyers can still shop around for the best rate. It will help them to know their price limitations and allow them to move quickly when they find the home of their dreams.
The problem is not all individuals get to become pre-approved and can't even get a good mortage rates especially this days where there is a falling mortgage rate. california real estate licensing
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