Importance of getting Pre Qualified!
I want to start the blog as you would when you make the discussion to purchase a home, YOU must start with the Pre Qualification. In today’s current real estate market most seller’s are requiring a pre qualification letter from a lender to make an offer on their home. You will start this process by calling your local mortgage broker (this only takes a few minutes).
You will need to supply your mortgage broker with basic information- You full name, address, social security number. This will allow the mortgage broker to pull your credit. That is step 1 to financing- the lender’s today all have minimum credit scores to qualify for loan programs. Once your credit has been run, you will then be asked basic information about your employment, length of employment, salary or hourly wages. The mortgage broker will then take step 1 your credit with all liabilities listed, versus your salary/income step 2 and come up with your purchasing power. During this process your mortgage broker will go over different loan options available to your based on your credit/income and what you deserve for a ideal monthly payment. You want to ask about different options available IE first time home buyers, Veteran’s, special down payment assistance programs, that might offer you more flexibility with your mortgage. You mortgage broker will also go over down payment options and loan terms (amount of years) available to you. As you talk about each loan and what it is best suited for, remember to ask any question that comes to mind. It is important as a buyer to know what a mortgage will require of you long term. Once these step are complete your mortgage broker will be able to supply you and your real estate broker the required letter to start the search for your new home. At this point as the buyer, you should have an idea of what your purchase power or what price range your should be searching. You should have an idea of what down payment will be required of you and the different sources that are allowed to be used for a down payment. You should have a basic idea of what your payment will be monthly for the price range you have been pre approved for. And last you will know what the costs are, and documentation that will be required to secure that mortgage. With the pre qualification process complete, you are ready to go buy a HOME! Next time I will share information about credit scores, myth’s versus reality. If you need to get pre qualified or have any question about your current mortgage, please feel free to contact me: Kara Holleran KaraHolleran@hotmail.com or 239-246-6000.