What Your Mortgage Pre-Approval Really Means - Tips for Florida Home Buyers

Recently I had a prospective buyer submit an offer on one of my listings.  Everything was all negotiated and about to be signed by the seller and then...poof... the contract vanished.

Why?

The buyer was pre-approved for the agreed upon price.  But then it was a no go because of all the numbers associated with the purchase.

This incidence brings to light a couple of issues prospective home buyers need to keep in mind while searching for their new home.

1. Don't start at the top of your budget.  
2. There are other numbers (costs) that must be considered.

The problem with the offer mentioned above was that once all the monthly fees like association dues were factored in then the total monthly expenditures placed the prospective buyer out of the pre-approval.  Other numbers that could impact pre approval include things like home owner insurance costs, mandatory flood insurance, and other "incidentals." 

Rather than go into all the details I am providing links to multiple articles here on the home buying process.

• Buying a home in Florida:  Learn the Language.
• Whether buying or selling, begin with the end in mind.
• What is the difference between mortgage pre qualification and mortgage pre approval?
• Finding the "imperfect" Home.
• Buying a Home: Contract to Closing in 20 Steps!
• Keys to a Successful Closing.
• Terms Define the Real Price.
• Offering more than list price: When, Why and the Pitfalls.
• There are REAL reasons for Price Differences.
• Buying a Home in Florida: Cost of Purchase Plus More!

Your real estate agent and lender are vital to the process.  If you are ready to buy or sell a home in Melbourne or Rockledge, Florida, call or text me at 321-693-3850.   

Please let me use my fifteen year's experience helping buyers and sellers in Brevard County, Florida  to help you with your real estate needs!