The Importance of Getting Your Home Loan Pre-Approval Letter


Real Estate Video Transcript: Home Mortgage Pre-Approval Letter - March 15, 2024

Hi, and thanks for joining me.  I’m Tim Tanz, with Platinum Realty of St Louis.

I just wanted to share a short video with you today regarding what I feel is the most important step when purchasing a home – and this goes for first-time home buyers, as well as buyers who have purchased multiple homes.

The most important step when beginning your home search is making sure to get your loan pre-approval letter before you do anything else.

I’ve seen where Buyers get excited and begin looking for a home, finding their perfect home, and then learning they cannot afford that home – talk about heartbreak. 

If you speak with a lender and get your mortgage loan pre-approval, then you know what you can afford, and you can tailor your home search with that price in mind.  I would suggest you get a loan pre-approval with the maximum sales price you can afford.  It shows the Sellers you are a well-qualified buyer. 

But I always tell my buyers I don’t want them to purchase all the way up to the max that they can afford.  I don’t want you to be house-poor.  I’ve been there, and it's not fun.  If you have some bad months financially, or you get laid off from work, I don’t want you stressing about your house payment that you maxxed out.  Better to buy under what you can afford and not stress about that house payment. 

As a standard rule, your house payment should not be more than 28% of your gross income; and all your other bills together (house payment, car payment, credit cards) should not be more than 36% of your gross income.

Spring is shaping up to be another hot real estate market in St Louis.  We still have a lack of good housing inventory for sale.  That means there are more buyers than available homes.  Every listing that comes on the market, there are at least several Buyers making offers on it.  So, if you, as a Buyer submit an offer on a home without a solid loan pre-approval letter, the Sellers will just skip right over your offer and go to the next one. 

And, I want you to be a successful buyer in this hot Spring market in St Louis.

If you don’t know of any home mortgage lenders, reach out to me & I can send you contact info for 3 of them.  Clients of mine have used these lenders with great results.  One I have known for 25 years; he has done the purchase loans and refinances on my personal homes, and I trust him.

Please don’t hesitate to reach out to me with any questions.  I would love to put my 27 years of experience to work for you.  Thanks and make it a great day!

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