 |
|
| |
Equal Housing
Opportunity
|
| |
 |
|
|
Did You
Know? |
| |
A move for job
purposes may be tax deductible?..consult your accountant.
|
| |
|
|
|
Pre-qualified versus Pre-approved
Q: I’ve been pre-qualified for a home loan, why should I get pre-approved?
A: Getting pre-qualified is the first step for a home loan or mortgage. It's the process of
supplying the lender with basic information about debt, income and assets.
With this information,the lender gets an idea of the mortgage amount for which you qualify.
Typically there is no cost involved for a simple pre-qualification. However, it is not usually
a thorough or comprehensive effort on the lender's part.
Getting pre-approved is the next step. This step requires a buyer to complete a mortgage
application and supplyi the lender with the documentation to check your financial background
and credit rating. The lender will then tell you exactly the mortgage amount for which you are
approved.
Completing both of the pre-qualifying and pre-approval steps before shopping for real estate
is both a time saver and also allows you to avoid any nasty surprises down the line. It allows
you to know in advance how much you can afford to spend. You won’t waste time looking at
properties out of your price range and also may give you the pleasant surprise of being
able to afford more home than you originally thought. The lender can explain your options and
recommend the type that might be best suited to your particular needs.
Being pre-approved for a mortgage also allows you to move quickly when you find your dream home.
And when making an offer that is not contingent upon obtaining financing, it lets the realty agent
and the seller know you are serious and able. In a hot marketplace, you go to the front of
the pack. You won't lose out to another buyer that has already arranged their financing.
Give me a call and I will be happy to walk you through the process of getting pre-approved for your
real estate mortgage and maybe provide some helpful tips.
Rick Lockwood
|
|
|
|
