There are many reasons to get excited when you decide to shop for Boston homes for sale. And why not, Boston is a great city to live and work in. We have diverse culture and entertainment, fascinating history, the best in pro sports, and the incredible beauty of our coastline. What’s not to love?
But in all your excitement to hit the Boston Real Estate scene, it’s so easy to forget or put off the unglamorous side of getting a mortgage. But is it really necessary to get pre-approved? There are in fact, many reasons to be pre-approved for a mortgage.
The first should be: How much house or condo can I afford?
Let’s face it, what you think you can afford and what your bank thinks, may not be the same. There are factors you may not have thought of, such as insurance and maybe higher utilities if you’re upgrading to a larger home. If you’re shopping for Boston condos for sale, you’ll also need to consider HOA (Home Owners Association) fees.
Do you know what it really costs to buy a home?
There are a variety of expenses and fees related to the purchase of a home. Appraisals, home inspections, title fees, and loan related fees. These can really add up and should be considered when making any decisions.
How long does it take to get approved?
There is a difference between getting a quick online pre-qualification and an actual loan approval. A qualification says that based on what you’ve told the bank you would probably get the loan. A pre-approval says we have verified income, credit history, assets and are ready to lend you a specific amount of money as soon as you find your perfect home. Collecting and verifying all of the necessary documents can take time, sometimes a week or more, depending on your employment, credit rating and assets.
This brings us to another big advantage to getting pre-approved.
The Boston Real Estate market is very hot right now. It’s imperative that you have a pre-approval to submit with your offer. Sellers rely on this information heavily when deciding on acceptance.
Shopping for and negotiating a home purchase can be stressful enough. Getting pre-approved for your mortgage early in the game will help relieve much of that stress and give both you and the seller, confidence in your offer.