The decision to purchase a home can be an exciting but sometimes confusing undertaking. When beginning your search for a home in Brunswick County, or anywhere for that matter, there are a number of factors that you will want to consider.
Getting Pre-Approved for a Mortgage is More Important Than Ever
Whether you are a first time buyer or already own a home and want to move up, getting pre-approval for your mortgage is a necessary and time saving step. In North Carolina as of 1/1/2011, a new Offer to Purchase and Contract was adopted. In it, buyers have a specific period of time, called "Due Diligence Period", during which loan application is made, inspections and surveys are done, and documentation is reviewed. By the end of this period, buyers must decide whether or not to go ahead with the transaction based on the results of all of these factors. Getting pre-approved or pre-qualified should be done prior to writing an offer on property because it is the first indication that buyers are even in the financial position to make an offer (can get a mortgage) and puts buyers one step ahead of the game in the Due Diligence process. Due Diligence money is not required, but if included in the contract may not be refunded if buyer reneges on the contract after the Due Diligence period.
Know Your Budget!
Getting pre-approved means that you will have a clear picture of the credit you have available to you to purchase your new home, as well as your price range. This will prevent you from spending time looking at homes that may be out of your budget and perhaps getting attached to a home that you cannot afford. It means that if you find the home that is right for you, it can more easily become yours!
Getting pre-approved for your mortgage means that you can act more quickly once you find the home that is right for you. The process of getting the mortgage approved is generally the longest and most complicated process in any home purchase. It requires verification of your income and employment, an evaluation of your credit reports, and the completion of a loan application. Having this step completed can save time and help you adhere to the Due Diligence time constraints. Pre-approval also means that you have an advantage should a bidding war begin. The seller can be confident that you can afford the bid you are making and that you can move quickly to finalize the sale.
Overall, there are a number of benefits to getting pre-approval for your mortgage before beginning the search for your new home. Most importantly, it can give you peace of mind in knowing that you are ready and able to make the commitment to homeownership, and that you are not wasting your time in looking at properties that you may not be able to afford.