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How to Get Pre-Approved for a Holden Beach Mortgage

When it comes to purchasing real estate in Holden Beach NC not everyone has cash available to work with. If you need to obtain a mortgage from a bank or other lender you’ll want to get yourself pre-approved for that mortgage before you go out looking for your next home. A lender will determine the loan amount they will give you based on your income and credit information.

Why Get Pre-Approved?

By getting pre-approved you’ll have an accurate idea of how much home you can afford. This will help you target your home search to homes that are truly your price range, thus saving you time. Pre-approval letters let real estate agents and sellers know that you’re a serious buyer with the funds available to back up the offer you make. A pre-approval letter can make your offer more valuable to the seller than an offer from someone without pre-approval.

Finding a Lender

Your first stop for finding a lender would likely be the financial institution you do your regular banking with, whether that’s a bank or a credit union, etc. Check on line for their mortgage interest rates and compare them to other local banks, credit unions and mortgage companies.

Does Pre-Approval Guarantee a Loan?

Read the fine print. Even with a pre-approval letter you may not get a loan from a lender if specific criteria are not met. Your lender may require additional income and asset verification, as well as the satisfaction of other conditions, before extending you a loan. A pre-approval letter is not an offer to lend, a commitment to make a loan, or a guarantee of specific rates or terms. It is also not an application for credit. Pre-approval letters are subject to modification or cancellation if your financial situation or other conditions change.

Might I Get Turned Down?

Yes. Not everybody can get pre-approved for a mortgage. You need to have a source of steady income, a good credit score and a reliable work history. Ideally, your debt-to-income ratio should be 36 percent or less. A 43 percent is the maximum ratio allowed. Decrease your debt to improve that ratio. If you need a larger loan than a lender is willing to give you, then increase your down payment and you may qualify for more.

If you'd like more information about purchasing a home in Holden Beach, North Carolina, give us a call at ReMax at the Beach at 910-842-8686. We'd be happy to talk with you further.