Across the Twin Cities, condos & lofts are selling at record prices – the median has never been higher, in fact. That’s great news for condo sellers, but not great news for aspiring condo & loft buyers, since the current active inventory is on the low-end. The high prices are the result of an incredibly tight market. If you’re interested in buying a condo or loft in Minneapolis/St Paul, mortgage pre-approval has never been more critical; learn why.
What is Mortgage Pre-Approval?
Mortgage pre-approval is an evaluation process that indicates how much mortgage financing you will quality for, based on your income, assets, credit score, and debts. Mortgage lenders issue the pre-approval; to get mortgage pre-approval, meet with a mortgage lender (either face-to-face or online) and provide information about your income, assets, and debts. The lender will also ask for specific documentation, usually your taxes and employment records, and run a credit check on you. Then, they will take all this information, figure out how much mortgage financing you qualify for, etc… Most mortgage lenders assign a time frame for the pre-approval, for instance three months.
Why Mortgage Pre-Approval is Critical for Condo Shopping in Minneapolis/St Paul
A pre-approval letter is like a line of credit, it tells the seller that you’re ready to do business now, instilling confidence. It also places you a step above all other condo shoppers who haven’t been pre-approved.
Pre-approval benefits you too, because it helps you budget and shop for property realistically.
When the real estate market is tight, you need every competitive advantage.
If you are looking for a Twin Cities Real Estate Agent, please feel free to contact Realty Group, Inc. – Shannon Lindstrom, Realtor @ 612-616-9714 today.