Mortgage Pre-Approval: Monthly Payments
Just because your mortgage pre-approval says you can buy a $300,000 home doesn’t mean it would be in your best interest to do so.
We’ve seen this situation unfold time and again. A client comes in with a certain price range in mind and once they realize they are pre-approved for more, they start searching for more expensive homes.It's not always a good idea to buy at the top of your pre-approval range. Click To Tweet
To an inexperienced lender, this may seem perfectly fine. If a client is pre-approved for a certain amount, they can easily afford that amount.
But we’ve been in this business long enough to know that while the overall price of a home matters, the monthly payment is a more accurate gauge of how much house you can afford to buy.When buying a home, consider the monthly payments rather than the purchase price. Click To Tweet
Mortgage Pre-Approval At Mortgage Specialists
Here at Mortgage Specialists, one of the first things we’ll ask you is what you would like your monthly mortgage payment to be. Doing so often puts home prices into perspective, especially if all you’ve known is monthly rent payments.
After discovering your ideal monthly payment, we will be able to provide you with a few different loan options in that range. From there, we can help you decide which loan is right for you. People will often opt to put more money down at closing to reduce their monthly payments, or vice versa.
While mortgages aren’t generally thought of as a very personal decision, we believe they are. You shouldn’t choose a loan just because that’s what was presented to you. You should get a mortgage loan based on how you personally like to handle your finances.
This may surprise you but most of our clients are approved for much more expensive homes than they end up purchasing. They simply chose not to buy at the top of their budget because they’d prefer to not be financially stressed.
We would love to be your partner in navigating your mortgage pre-approval. If you’re ready to begin the pre-approval process, please fill out our online application. And remember, the earlier you get pre-approved, the better!