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So my first contact with a new homebuyer or people who are moving up to
their second home is typically to get pre-approved for that next mortgage.
With current homeowners, a lot of times they have not yet sold their current house
and so what they're trying to figure out is whether or not they can afford to
carry both homes for a period of time because they may want to move to get
into any school system or get started of with their next home before they've sold
the current home. Some are looking into the possibility of renting their home... So we try
to go through the pre-approval process, work with their numbers and figure out
whether they are financially able to carry both mortgages. For years I've
been telling my borrowers that it is important to get pre-approved not just
so they know how much they can afford but also so that if they get into a
competitive bidding situation they can strengthen their bid by saying I've already
been pre-approved for a mortgage and i'm ready to go. And now we're
finding that realtors,
some realtors are even unwilling to present an offer on behalf of their
buyer if the person hasn't been pre-approved, so we want to get that
process started as early as possible. We want to see if there's any hiccups in
someone's credit or in their financial picture or the down payment and that
sort of thing, so we can help pull things together know exactly where they stand
so they are ready to go when they write that offer.