How Accurate Is Your Pre-Approval Letter?

When you hire a Realtor or real estate agent to look at properties, most of the time they will show you homes priced within the limit of your loan pre-approval letter. If you’re strictly following their recommendations, you may be missing out on some great real estate deals. Did you know the price ceiling of homes you can consider depends on several factors such as how much income you take in, your monthly expenses, type of mortgage loan, roommates, and many more. Determining what price range of homes to look at will also depend on other multiple factors.

Instead of only viewing homes in a tight price category, try checking out properties above and below your recommended price range. If you don’t spend enough time checking out the local market, you won’t get the feel of the type of home and neighborhood you want to reside in.

Unfortunately, it’s not uncommon for many Realtors to advise their clients to visit homes within a tight price range. Once they buy a property, they’re upset to find out they could have bought a bigger and nicer property had they prioritized their finances and utilized a different mortgage program. If their mortgage agent had offered a competitive adjustable rate mortgage loan instead of a fixed rate mortgage, they would have been able to move into a nicer home with a higher quality public school.

Don’t let your Realtor or loan agent push you into checking out properties in a narrow price range. Inspect as many homes and communities to give you a good feel of what’s out there. If your Realtor only lets you view homes up to your maximum price limit, this would be similar to you planning a getaway to a new tropical destination and your travel agent dictating what hotel price limit you should consider. Most likely you won’t be happy because you didn’t get the chance to check out all the available lodging and make your own decision.

This scenario is similar when you go shopping for a house. Be sure you thoroughly researched what your options are and what type of financing is available to you. If you’re dissatisfied with what you see, don’t be afraid to switch to a different neighborhood. You may just decide to spend more money for property in a better neighborhood or better school district.

On the other hand you may decide to spend a lot less on a property. Perhaps $350,000 will satisfy most of your home buying needs. Rather than paying $475,000 dollars, you can set aside the money and use it to renovate the house, live a more comfortable lifestyle, or invest in higher paying returns.

It’s important to check out a wide array of properties and communities before you finalize your decision on a home, neighborhood, or price range. Weigh all your options carefully. Compare all the benefits and features you get with each particular property. By following these home buying steps, you’ll make a decision you can feel good about.

Are you searching for Los Altos homes for sale, then use these local Los Altos Realtors to locate one.