For competitive reasons when bidding on a property, we recommend you work out your financing options first before you start to look at houses. 

To learn more about financing your new home, checkout these useful web sites).    

To assist you, we typically: 

• Discuss the differences between a financial pre-qualification and a more formal mortgage pre-approval.

  • A mortgage pre-qualification -

    • based on a simple discussion about your income, assets, liabilities (monthly payments) and credit history with a mortgage professional or on the Internet.

    • gives you a sense for what you can afford,

    • has limited value to you when you are making an offer on a property.

  • A mortgage pre-approval -

    • based on your making a more formal mortgage application prior to finding a home where a lender actually verifies your income, assets, liabilities and credit history and approves you for a pre-determined mortgage amount.

    • typically comes with conditions that must be met prior to closing the loan; i.e. appraisal of the property and a fully executed sales contract.

    • to remain competitive, you typically need to have a formal mortgage pre-approval when you offer on a property. 

• Why you should get a pre-approval for a mortgage before you look at homes?

  • Gives you a specific loan amount for which you are qualified. (For a check of how much you can afford to spend, try this  Affordability Calculator.)

  • Helps you determine how much cash you will need to purchase your new home (closing costs, etc.).

  • Makes you aware if the credit bureaus have erroneous or outdated information about you.

  • Gives your lender the opportunity to advise you on the types of financing available to you.

  • Gives you comfort in knowing that your loan approval will not be an obstacle in the purchasing of your new home.

  • Helps you eliminate from consideration all those homes that are not in your price range.

  • Shows Sellers you are serious, and gives you a distinct advantage in negotiations. It’s the next best thing to offering ALL CASH.

  • In the case of multiple offers on a desired property, your offer will stand out because your loan has already been pre-approved.

  • Cuts the time needed to prepare for closing proving you can move more quickly than other buyers.

Discuss things to be aware of before talking with any lender (home mortgage payment affordability, condo maintenance fees, down payment and closing cash requirements).

Discuss approaches to finding and working with mortgage lenders who are licensed in New Jersey, the typical steps involved, and the information you need to collect to make your mortgage application run smoothly.

Clarify how we coordinate with your lender and the responsibilities of:

• you - the home buyer,

• your mortgage broker or lender,

• and us - your Exclusive Buyer Agent.

and, finally, monitor the progress of your mortgage application, property appraisal, and your final mortgage commitment.

For more information related to financing you may want to refer to the U.S. Department of Housing and Urban Development brochure "Shopping for you Home Loan - HUD's Settlement Costs Booklet".

Note: Make sure to apply for your mortgage once Attorney Review is closed otherwise you may have difficulty getting your mortgage commitment on time.           

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