County Home Buyer Resources
Pre-Approved for a loan
||Imagine this - You've found the
prefect home that is everything you are looking for. You look
forward to buying it and call a Realtor to make an offer. You
then call a lender and find out that you are not
qualified to purchase the home. To avoid a
heartbreaking situation like this, this, you should always get
pre-approved for a loan! Getting
pre-approved for a home mortgage loan is an essential
first step to home buying. Without loan
pre-approval, you can not be certain that you are qualified to
buy a home. Also, you will
not know how much home you can afford. To go home shopping
without loan pre-approval is putting the "cart before the
horse". It is wise then, to consult with a lender or
mortgage loan specialist as the first step to home buying.
pre-approval process, a mortgage lender or loan specialist
will check your qualifying criteria, including your credit,
income, debts, reserves, etc., to determine how much you may
borrow and the extent of your purchasing power. You may find
that you can afford much more home than you thought! In any
case, a lender will let you know which loan programs you
qualify for, how much of a down payment you will need, various
interest rates, and what your monthly payments will be under
certain loan scenarios. Once you have this information in
hand, you will be able to accurately determine your
new home's price range.
Pre-approval goes a step
further than pre-qualification, which is just a basic review
of your finances. What is the difference between getting pre-approved and
pre-qualified? Through the
pre-approval process, a lender will review your finances in
greater detail and will pre-approve you for a certain amount
so that you will know how much home you can shop for.
You can read more about the differences, here.
One of the most important reasons to
get pre-approved is to get a pre-approval letter, which
shows that you are qualified for a purchase. The pre-approval
letter is now considered to be an essential part of an offer
package on a home. An offer without a pre-approval letter will
almost certainly be rejected. This is because a listing agent
will be very hesitant to accept an offer and take a home off
of the market if he/she is not sure that the buyer is truly
qualified for a home loan. Because of this, the pre-approval
letter becomes an essential tool in convincing a listing agent
and their buyer that you are a solid buyer and that they
should accept your offer.
In getting you pre-approved,
your lender will also introduce you to the various loan
programs that will be available to you. With this, you will
get a good idea of what your monthly loan payments might be
through the different loan options that your lender
offers. Generally there is no cost to
get pre-approved. Most lenders will gladly offer this service
to you in exchange for the opportunity to earn your business.
Once you know you a re qualified, you may of course shop
lenders for the best interest rates and loan programs. I will
be happy to pass on a list of recommended lenders to you!
If you are having difficulty
qualifying for a home loan due to poor credit or low FICO
scores, consider using professional credit repair assistance.
More on that here.
Call me at (949) 290-3263 if
you would like a referral to a great lender! I have several
loan officers who can help you get a prepared for a loan and
get you pre-approved!
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mortgage assistance program
Congratulations on your decision
to purchase a home! If you are looking for assistance with
your first home purchase, looking to up-sized or downsize, or
are looking for an investment property, you have come to the
right place! Please call me to arrange a consultation
with my team. We can help you all phases of your purchase,
from showing you your home to referring you to financing.