Pre-Approved Mortgage as the First Step to Your Dream Home

If you've been planning-or even just dreaming-of buying a luxury home or second home, there could be good news for you. There are real estate professionals who specialize in fine homes and estates and who can recognize the unique sense of style and taste that a luxury home can represent.

These professionals understand that luxury home buyers are looking for a home reminiscent of their own signature style-and know how to help their customers get the homes they want. One recommendation is to get pre-approved for a mortgage. This process can often be done in under an hour and it accomplishes two important goals.

1. It will tell you how much house you can afford and what your monthly payments would be.

2. It tells the seller that you can afford to buy their home.

By definition, a pre-approved buyer generally has an approved mortgage subject to an appraisal of the property. Many times a buyer can use this pre-approved status as leverage during the negotiation process.

There are many terms you should know when looking for a mortgage for your high-end home. Some options include super jumbo, a really big loan, an Interest Only ARM which lets you pay interest only for the first several years of the loan. If you're self-employed you may want to consider a SELPH loan, which provides the convenience of reduced documentation.

Another tip is to make sure to look at all aspects of the property when comparing homes. Questions to ask include:

• Is the property tax approximately the same?

• Are both houses renovated to the same degree?

• Do they both have the same number of bed- and bathrooms?

• Are both houses located on the same or similar streets?

• Does either house have any encumbrances?

Once you find the home you like, you may need to make an offer for the house. This can be a trying time since both parties have very different goals. It may be better to have a third party, such as a real estate professional, negotiate the offer. If you do have any personal interaction with the homeowner, don't give out any information about your move, your current housing status, financial status or your feelings about their property-positive or negative.

Fortunately, many high-toned homes are listed with the Century 21 Fine Homes and Estates program. Van Davis, CEO and president of Century 21 Real Estate Corporation states, "Century 21 affiliates across the country are successfully uncovering distinctive ways to service the unique real estate needs of upscale home buyers in their respective markets."

To find these agents and to learn how they can help you get the most home for your money, visit

A successful search for a superior house can start with finding an expert in luxury homes.

© 2001 - 2007
Privacy Policy & Disclaimer
Women's finance - making smart financial choices
Your source for women's finances & financial advice
Free Budget Club Free Worksheets Forums Blog


Auto Loans
Credit & Debt
Credit Repair
Education Savings
401K Retirement
IRAs Retirement
Mutual Funds
Travel Finances
Health Insurance
Life Insurance
Auto Insurance
Financial Calculators
Kid's Financing
Quiz Time
Free Worksheets
Budget Challenge
Message Boards