Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you cant afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt, and credit history.

After you have been pre-approved for financing, you will want to ask your mortgage professional for a Good Faith Estimate (GFE). This document is valuable for showing you just how much you can expect to pay in closing costs for your new home purchase. You may be surprised to learn that there are a number of non-variable, regulated charges that are associated with every transaction. Examples include transfer tax and title insurance.

The GFE will also show you how much you can expect your monthly mortgage payment to be for the price range you are considering. It's always a good idea to let your mortgage professional know what sort of monthly payment you are comfortable with. This, along with other qualifying factors, will help him to determine the price range you should be considering.

Most Realtors will not even write an offer or accept an offer to purchase a home without a pre approval letter froma mortgage lender or broker. The process for getting a pre approval letter is quite simple and will save you the embarrassment of trying to buy a home when you may not be able to. Contact me at 414-303-1215 or msearing@mayfairmortgage.com to talk about your situation and your pre approval options!