Get a Mortgage Pre-Approval and a Committed Underwriting
An important ingredient in a successful home search is knowing how much you can afford. You don’t want to fall in love with a property only to find out it’s outside your price range.
That’s why I recommend both getting a Mortgage Pre-Approval and if possible a Committed Underwriting.
The Mortgage Pre-approval is a document from your bank or other lender stating how much of a mortgage they are willing to give you. There are two advantages to getting this pre-approval:
- It gives you the peace-of-mind of knowing you can afford homes you view on the market, and won’t have problems arranging financing.
- It’s a sign to sellers that you are a serious, prepared buyer – which gives you the edge when making an offer.
A Committed Underwriting is even better. This a document where the lender confirms that they have actually done a detailed review of your finances and have formally approved you for a loan of $x. You still need to have the lender appraise whatever house you are purchasing and approve that specific property, but there is no risk to a seller that you will not qualify for the stated financing amount. Sellers treat offers from prospective buyers with committed underwritings as if the buyer was offering cash. That treatment can be the difference between a winning and losing offer.
You can arrange for a Mortgage Pre-Approval with your bank or other lender, or by working with a good mortgage broker. I work with a great loan officer at Guaranteed Rate, Michael Ciavarini. Michael can get you pre-approved and UNDERWRITTEN.
One way to get started is to complete Guaranteed Rate’s online application (link here), which is very simple and should not take you more than 10 minutes. Once you complete the application, Michael will prepare some financing options and a summary of the transaction. Michael is happy to chat with you (508-662-5381) with any questions before doing the online application.
A similar option is available through Quicken Loans’ Rocket Mortgage. Quicken offers a form of rate protection with their product. While I do not have a specific banker there for you to go through, you can begin their process here.
If you have been UNDERWRITTEN you will have a huge advantage in writing offers.
Have questions about arranging financing? Please submit the form shown or call or email me.