Today I’m joined by Karen Johnson of Waterstone Mortgage to answer a few quick questions about an important part of the home buying process: getting pre-approved for a mortgage loan.
First, why is it important to get pre-approved?
According to Karen, getting pre-approved instead of just pre-qualified means all of your documentation will be reviewed and you’ll get an accurate estimate of your capability to obtain a mortgage loan. Your lender will check your income documents and asset documents to make sure you can get from point A to point B (the closing) without any issues.
When people provide their documentation for the loan, do they ever say one thing while their documentation says something else?
Yes—Karen can gain verbal information from a buyer, but once she reviews the documentation, she might find out from a pay stub or an employment verification that the actual income she can utilize for the repayment ability of a mortgage loan is different. This may improve their scenario or reduce the income she can use.
What happens when a buyer goes shopping for a home without a pre-approval in our competitive seller’s market?
In this case, the buyer might get very excited about making an offer on a home only to discover that they don’t even qualify to buy it. When this happens, everyone involved in the situation is impacted, including the listing agent.
If you have any further mortgage questions and you’d like to get in touch with Karen, you can give her a call at (407) 645-6360 or email her at Kjohnson@waterstonemortgage.com.
And, as always, if you’d like to speak to me about any of your other real estate needs, feel free to reach out. I look forward to hearing from you soon.