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We come across many buyers on a daily basis and, often, we notice that some of them are quite misinformed. The source of this misinformation is a range of online mortgage calculators that ask buyers to put in a bunch of their information - such as the home price and anticipated interest rate - and buyers walking away with the impression that they can afford more than they can. These buyers will come to us and tell us they don’t need to be approved because they’ve already ran the numbers.
We come across many buyers on a daily basis and, often, we notice that some of them are quite misinformed. The source of this misinformation is a range of online mortgage calculators that ask buyers to put in a bunch of their information - such as the home price and anticipated interest rate - and buyers walking away with the impression that they can afford more than they can. These buyers will come to us and tell us they don’t need to be approved because they’ve already ran the numbers.
“
The mortgage application process is
much more in-depth than any online calculator.
”
much more in-depth than any online calculator.
What many buyers don’t understand is that the mortgage application process is much more in-depth than any online calculator. It’s not just about determining what monthly payment is in your budget. There are many different factors involved; a typical lender is going to look at how long you’ve been at your current job, your credit score, and the type of loan you’re going to get, among many other factors! Most people don’t know what’s on their credit report, which is a major factor in obtaining a mortgage.
Bottom line, the first thing you need to do if you’re planning on buying is sit down with a lender and find out your entire financial picture. Any other first step is a waste of time and could lead to some major headaches down the road. When you get pre-approved, you’ll get an in-depth look at your financial situation and will know exactly what to expect from the buying process. Really, it’s a no-brainer!
If you have questions about this crucial topic, or if you would like more real estate advice, please don’t hesitate to reach out to me and my team. We’re always looking to help!
