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Summerville Mount Pleasant West Ashley Your Buying Power The New Home Process

Getting Preapproved

The importance of getting preapproved

In today's market, getting preapproved for a mortgage is not only necessary but required for submitting offers. But the real value of getting approved is finding out your buying power. Knowing that power allows us to get a good idea of the price range you want to be in and also allows us to tailor strategies custom to your financial profile to help you get the best deal possible on your new home. So why is getting preapproved scary for some? We get it. Especially if it's your first time applying. The unknown can be scary and there's always the fear of not getting approved. So let's talk about the most common struggles people have and see if we can squash some of those myths about preapproval!

Preapproval Myths & FAQ's

Credit Score

Your credit score is only one piece of the equation used when applying for a mortgage but is one of the most talked-about and for good reason. So why is credit so important to a lender? Your credit score shows the lender how responsible you are and how well you can manage money borrowed. Sounds simple right? Well maybe not so much! Your credit score reviews many different factors to calculate your scores and you will have to be active in borrowing and paying back in order to build show the lender that you are creditworthy. Some of these factors include how much money you borrow within a certian period of time, if payments are made on time, how much of your available credit you use, how long since you started with your first account, and more.

Down Payment

Your down payment will be determined by a few factors.

1) How much money you would like to borrow

2) Which loan you choose

3) Any special programs you may qualify for.

Your lender will go over these amounts with you ahead of time and help you determine which amount is right for you.

Employment

Whether you are self-employed or work for a company, lenders want to see that you have a steady stream of income. Remember that your loan will likely be 15-30 years so it is also important to the lender that you have maintained the same job or at least in the same field for a certain amount of time. This is usually a minimum of 2 years but really depends on the loan requirements. Also, be careful to consult your lender before switching jobs or leaving your current employer. You'll want to make sure you remain steadily employed up until after closing.

Take our questionnaire to see if you're ready

Use this form to see if you are ready to apply for a mortgage! We won't ask you for specifics or private information. This is just a general way to see what steps you should take to reach your homeownership goals.

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The information provided is to serve as generalized information and not individual recommendations regarding your finances. The official recommendation of Local Homes And Land is to speak with a lender or financial expert before making any financial decisions. Local Homes And Land is a real estate brokerage and does not give financial advice.