Tuesday, April 11, 2006
BEFORE YOUR BUY YOUR HOME....GET PRE-APPROVED?
By: Mark Courage
Article Source: http://www.articledashboard.com
OK. You’ve made the decision. You’re ready to buy a house. Great! You’ve got that dream home pictured in your head. Now all you have to do is find a Realtor, make your offer and move in. Right? Wrong. Your first step should be to find a trustworthy mortgage professional. But that’s not the fun part, you may say. Why start with a mortgage professional? In a nutshell, this can save money, time and increase your bargaining power.
Your mortgage broker is going to be able to tell you first if you can qualify to purchase a home at all. Second, if you are in the running for purchasing, he or she can tell you how much home you can qualify for. Think about it. Do you and your Realtor want to run around for a month or two worth of weekends, finally find your dream home, just to find out that you cannot afford it? That’s a lot of time, and time is money (or at least a lot of wasted weekends). Wouldn’t it be better up front to know what you can and cannot buy, zero in on that, and achieve that wonderful feeling of success? Of course.
Well, you may have already thought of all that. However, did you realize that the seller of your dream home may give you preferential treatment if you’re pre-approved? The seller has a life too and time lines like the rest of us. They want deals that are going to work. They don’t want their home under contract, just to have the deal fall through because the buyer cannot qualify!
So, let’s say you make a bid on a house and another party makes a bid at the same time for the same amount. The other bidder is pre-approved, you aren’t. Which bid should they accept? Obvious. Another scenario, let’s say you (not pre-approved) make a bid and another bidder bids slightly lower but is pre-approved. Which bid would you accept?
And one last matter to cover, there are different levels of pre-approvals. The lowest level might be called pre-qualification and this involves the mortgage professional taking your information (income, expenses, etc.), putting it all together and letting you know how much home you can qualify for based on the numbers you provide.
Another level of pre-approval is for the mortgage professional to run the loan through automated underwriting (getting more technical, here) to get an approval provided that all your info can be verified.
The highest level would be running the loan through a lender and actually doing all the verifications. Obviously, the higher level of pre-approval gives you more to stand on and carries the most weight when bidding on a home. In any case, your mortgage professional should provide you with a letter stating on what level you are pre-approved.
Hopefully by now the picture is clear, call that mortgage professional BEFORE starting your house search. And maybe, just maybe, the process might even be fun.
If you are kind of nervous about going to to your local bank you might consider applying for your mortgage online. The internet has some very reputable mortgage companies. One of my favorite companies is Ameriquest Mortgage
(to check out this company simply click on the red link).
Please remember to be very careful about the mortgage company you choose. Check them out before you apply.
Until Next Time!
Jasmine
source: www.foxsatellite.com, http://barworks.blogspot.com/
Article Source: http://www.articledashboard.com
OK. You’ve made the decision. You’re ready to buy a house. Great! You’ve got that dream home pictured in your head. Now all you have to do is find a Realtor, make your offer and move in. Right? Wrong. Your first step should be to find a trustworthy mortgage professional. But that’s not the fun part, you may say. Why start with a mortgage professional? In a nutshell, this can save money, time and increase your bargaining power.
Your mortgage broker is going to be able to tell you first if you can qualify to purchase a home at all. Second, if you are in the running for purchasing, he or she can tell you how much home you can qualify for. Think about it. Do you and your Realtor want to run around for a month or two worth of weekends, finally find your dream home, just to find out that you cannot afford it? That’s a lot of time, and time is money (or at least a lot of wasted weekends). Wouldn’t it be better up front to know what you can and cannot buy, zero in on that, and achieve that wonderful feeling of success? Of course.
Well, you may have already thought of all that. However, did you realize that the seller of your dream home may give you preferential treatment if you’re pre-approved? The seller has a life too and time lines like the rest of us. They want deals that are going to work. They don’t want their home under contract, just to have the deal fall through because the buyer cannot qualify!
So, let’s say you make a bid on a house and another party makes a bid at the same time for the same amount. The other bidder is pre-approved, you aren’t. Which bid should they accept? Obvious. Another scenario, let’s say you (not pre-approved) make a bid and another bidder bids slightly lower but is pre-approved. Which bid would you accept?
And one last matter to cover, there are different levels of pre-approvals. The lowest level might be called pre-qualification and this involves the mortgage professional taking your information (income, expenses, etc.), putting it all together and letting you know how much home you can qualify for based on the numbers you provide.
Another level of pre-approval is for the mortgage professional to run the loan through automated underwriting (getting more technical, here) to get an approval provided that all your info can be verified.
The highest level would be running the loan through a lender and actually doing all the verifications. Obviously, the higher level of pre-approval gives you more to stand on and carries the most weight when bidding on a home. In any case, your mortgage professional should provide you with a letter stating on what level you are pre-approved.
Hopefully by now the picture is clear, call that mortgage professional BEFORE starting your house search. And maybe, just maybe, the process might even be fun.
If you are kind of nervous about going to to your local bank you might consider applying for your mortgage online. The internet has some very reputable mortgage companies. One of my favorite companies is Ameriquest Mortgage
Please remember to be very careful about the mortgage company you choose. Check them out before you apply.
Until Next Time!
Jasmine
source: www.foxsatellite.com, http://barworks.blogspot.com/
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