ChitownLiving | Chicago Real Estate + Life

Athol Kay over at The Real Estate Guide makes a great point regarding buyers getting mortgage pre-approvals from their lenders. No need to re-hash the entire topic as Athol has done a great job, but in short, the post emphasizes the importance of not tipping your hand by customizing your pre-approval to a specific offer rather than getting a pre-approval for the maximum amount you can borrow up front. Quick steps to the pre-approval process… 1. Meet with your lender and get cleared for whatever amount you are comfortable borrowing. No need to get a physical pre-approval letter at this point but at least you are able to determine the appropriate price range. 2. Start your home search and find your perfect home. 3. Make an offer and at this point contact your lender for a pre-approval letter tailored to the offer. The mortgage pre-approval amount should be equal or close to the amount of the loan (Down Payment + Loan = Offer Price). Very important to ensure you keep your lender in the loop, your lender is responsive, and can be reached on weekends/evenings if necessary (sorry lenders). Oh, and I almost forgot … Go Bears!