4 Tools to Land Your Dream Home

Getting approved for a mortgage is the first step in owning your dream home. As you go through the home buying process, you will quickly learn some of the extra steps needed to secure a home. The steps will help you get in the front of the line, especially when you find a home you love.

Read on to learn four steps you can prepare for so when you find a dream house, you will be ready to go.

1. A Verified Pre-Approval Letter

Getting approved for a mortgage may be the first step in obtaining a home, but you can take things one step further with a verified per-approval letter. The letter is distributed by the mortgage company who approved your total mortgage amount.

With the approval letter, the sellers will know you have enough funds to afford the home and they will not second-guess your bid or run into any financial snags later down the line. The letter works with any home you put an offer on so you do not need to obtain a letter each time you find a house you like.

The pre-approval letter will also help you shop for homes within your budget. With the set mortgage, you know sellers cannot try to counter with an offer higher than you actually have available or they may risk losing out on the deal.

2. The Personal Letter

A pre-approval letter is not the only letter you should present to home owners. A personal letter will add your story beyond just the numbers and dollar amounts. You could take many themes on with the personal letter. For example, you could be a newlywed who dreams of a home where you can grow your family.

You could make the letter specific to the home. For example, if the house has a large sun room, you could talk about the family bonding and fun times you imagine having in the sun room. The more personality you put into the letter, the better. Home owners will see your human side and the letter could sway the owners to select your offer.

The letter could also explain why your offer is limited to the asking price or below asking price. For example, you could detail how you've worked overtime or multiple jobs to save up for a dream home and the one you seek is theirs. The sympathetic touch could go a long way in helping get a home you love.

3. Escalator Clauses

When you shop for a home, the last thing you want to do is add hundreds to your monthly mortgage bill because you overbid on a house. To help get the house for the cheapest price, consider adding an escalator clause to your offer.

The escalator clause starts at your ideal price and then rises based on other offers from potential buyers. For example, you may have a set offer at $200,000, but the escalator clause would increase the offer to $210,000 if someone has come in with an offer of $205,000. Ideally, you want to save the escalator clause for a house you truly want to own.

4. Increasing a Down Payment

After you've been approved for a mortgage, you will add the approved amount with your down payment to determine the total house you can afford. As you hunt for houses, try to save money and increase your down payment as much as possible. The extra down payment will give you more wiggle room as you place offers on homes.

When you find a dream home, you can place a higher offer to help lock down the price and get approval for the home.

For more information on mortgages and housing option, contact us at Cornerstone Residential Mortgage. We will help you find a mortgage to fit you income levels and take you one step closer to obtaining your dream home.