In the complex world of mortgage loans, pre-qualification and pre-approval mean two very different things. Pre-qualified buyers still have countless steps to take in order to gain assured funding. Downtown Boston condo buyers who’ve been pre-approved, however, have already undergone stringent financial reviews and have been given shareable statements showing the funding amounts that lenders are willing to extend. With a pre-approval letter in hand, it’s possible to make offers on Downtown Boston condos for sale that carry real weight and to start moving closer to your dream of property ownership.
Funding Can Still Be Denied
The first and most important thing to note about pre-approval for a mortgage loan is that it doesn’t absolutely guarantee funding. A lender can still retract its loan offer based on new findings or changes in the borrower’s financial status. It’s only after the loan has reached the underwriter’s hands for finalization that prospective homeowners can truly rest assured. This makes it important for consumers to avoid any major purchases or other financial activities that will alter their debt-to-income ratios or negatively impact their financial profiles.
Consult with Your Agent
If you haven’t aligned yourself with a good real estate agent in Downtown Boston, it is definitely time to do so once you have a pre-approval letter. Armed with a pre-approval letter, you’ll have the ability to set a feasible budget for this purchase. Your agent can use the numbers on this document to identify properties that fit your means and your overall purchasing goals. Pre-approval letters can also be shared with sellers in order to show your level of commitment and to prove that you’re financially qualified to back the offers you make.
Further Credit Reviews
Most lenders will review your credit yet again within just five days of closing. In addition to avoiding major credit purchases, you also want to avoid opening new lines of credit or closing old credit accounts. In fact, even paying down old, delinquent accounts could prove detrimental. These payments will cause outdated accounts to rejoin your recent credit history, which could result in a significantly lower credit rating and a decline or a decrease in available funding. The best bet in these instances is to always play it safe until closing is done and the loan has been underwritten and signed.
What Else Should I Know
If you’re a first-time Boston Midtown condo homebuyer, you’ll like have other questions as you search for the perfect place. Make this process as easy as possible on yourself by reaching out to an experienced agent who is familiar with the local market, including downtown high rise condos.
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