Believe it or not, springtime is right around the corner—it’s less than six weeks away! But spring isn’t just the time for snow to melt, flowers to bloom, and allergies to act up—it’s also the time countless Long Islanders start looking to move.
Still, just because spring has yet to arrive doesn’t mean you shouldn’t be proactive in your house search, especially when it comes to getting pre-approved for a mortgage.
Contour Mortgage’s Home Mortgage Consultant Abraham Ohanian points out that during this time of year, there are some people who do try to get pre-approved for a mortgage now. In fact, just recently, he pre-approved four different clients in one day and each of the applicants are looking to move in April and May of this year.
However, Daniel McGorman, Division Manager at Contour, notes that there are a good amount of people who fail to plan ahead. It’s not until they find a house they like that they realize their mistake. “They’ll find a house and all of a sudden the realtor will ask for a pre-approval and they’ll say they don’t have one.”
The sooner the better.
Just think about how fast-paced everything is on Long Island and imagine the craziness that will ensue in the real estate market as we head toward spring. You have to act quickly if you want to snatch your dream home before the competition has a chance to get their hands on it.
Bobby Papadopoulos, Contour’s Mortgage Loan Originator, explains that getting pre-approved should come before you begin house hunting. “I cannot stress enough the importance of being pre-approved early so you can limit your search to houses that make sense to you financially,” he says.
Ohanian echoes Papadopoulos' sentiments. In fact, the first question he asks people who are looking to get a mortgage pre-approval is, “When are you looking to move?” This way, Ohanian knows how much time he has to help put them in the right position financially, so they won’t run into any obstacles when they become interested in making an offer on a house. Some people may need to work on improving their credit while others may need to look into finding a co-signer.
Papadopoulos describes a situation that happens all too often. “Someone starts looking a home in the summer without being pre-approved,” he states, “and waste time making offers and moving on a certain house or houses they can’t afford, and misses the boat on a house that would have been perfect by the time they are actually pre-approved and start looking in homes within their range.”
McGorman agrees by saying, “It’s always good to know what you can afford ahead of time.” This way, you can be the first homeowner to go in and make an offer on a house rather than rush to get pre-approved only to lose the house to someone else.
Make sure you don’t end up in a similar situation because you skip over this necessary step now.
What do I need for a mortgage pre-approval?
The pre-approval process is simple, especially at Contour, even though they dedicate a tremendous amount of time and effort to reviewing your documentation.
First, you send over a few documents for review and then speak with a representative to discuss your moving timeline.
Such documents and financial information include:
• Tax Returns and W2s (from the last two years)
• Two most current Paystubs
• Last two months of Bank Statements
• Job History
• Other Asset Statements (i.e. Retirement and Investment)
And as long as you keep with your finances, as Papadopoulos explains, you’re pre-approval can always be updated if it takes you a while before you find a house. If you’re still in the same shape you were financially when you got pre-approved, all Contour would do is recheck your credit, Ohanian adds. This is required if it’s been more than 90 days.
Even if you don’t get pre-approved the first time around, McGorman says not to worry because you will eventually with Contour's help. “It’s just a matter of guiding you down the right path.” Then you'll be able to re-apply and get pre-approved.
Getting pre-approved for a mortgage now before buying a home in the spring is one less thing to worry about when you’re in the midst of trying to sell your current home and look for another, so don’t wait until the last minute to start applying.
Apply for a mortgage pre-approval online in minutes.
