No matter where you are in Florida, you’re no more than 60 miles from the beach. However, along the Emerald Coast, you’re often no more than 60 seconds.
This oasis in Northwest Florida enjoys soft, white sand and calm water that reflects the most radiant emeralds and blues. Golf, tennis, outdoor sports, dining and shopping are just minutes from the Gulf of Mexico’s beach condos.
With no income tax and 200 days of sunshine a year, Northwest Florida is a popular port of call for full-time residents and vacation home buyers.
So, what do you need to know before you start shopping for a beach condo? Securing financing is a good place to start. Fortunately, mortgage loan pre-approval is a relatively straightforward process.
In this article, we’ll examine what you need to know to about a mortgage pre-approvals before deciding on your new beach condo.
Pre-approval for Beach Condos
The first thing you should evaluate is how much you can afford, if you’re planning to finance a condo. Many begin with a pre-approval letter. The pre-approval letter is issued by a lender, after a soft look at your credit. The letter usually has an expiration date and simply indicates that you’re likely able to get home financing.
Different lenders distinguish between pre-qualification and pre-approval based on the information they require before issuing either; however, presenting either to a seller shows that you’re a serious home buyer.
Securing a pre-approval letter is an important first step in the mortgage process, but you’ll need to get final approval before your mortgage is issued and the sale of your condo is final.
What qualifies me for a pre-approval letter?
Some of the information a lender might take into consideration before issuing a pre-approval letter are::
- Credit Score -the higher the score, the better the interest rate
- Proof of income or assets
- Proof of Identity
- Employment verification
- Your DTI (Debt-to-Income Ratio)
A W-2, tax return, pay stub, and bank statements will usually attest to your financial qualifications, while your Social Security card, driver’s license, or passport will usually prove your identity.
In some cases, a pre-approval can be conducted online with a lending agent.
Once your lender reviews these documents, they’ll issue a pre-approval letter for a loan amount. This is a ballpark figure that will give you a sense of how much you can expect to borrow, although you are still able to shop for a mortgage lender.
The pre-approval letter is important because many real estate agents won’t make an offer without presenting one. The letter demonstrates that any offer you make – up to the maximum indicated in the letter – is likely to be honored.
How Long Will My Pre-Approval Last?
The mortgage pre-approval letter will expire after a certain amount of time. The lender deems this necessary because they don’t want to guarantee money to individuals whose financial situation might change.
Pre-approval letters can last from 60 to 90 days, or up to 5 months, depending on an individual’s creditworthiness and length of employment.
Beach Condos are Calling You
Now that you understand the pre-approval process, it’s time to consider beach condos on the Emerald Coast. .
Rodos Advisors powered by eXp are eager to help you find a beach condo that is perfect for you. Contact us today to begin your beach condo search.