Ron Denhaan, Realtor (949) 290-3263. Coto de Caza real estate specialist.

Orange County Home Buyer Resources

Get Pre-Approved for a loan



Get pre-approved 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.

 During the 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.

 


 

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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.

   Ron Denhaan

Ron Denhaan - Realtor

Realty One Group

(949) 290-3263

Ron@rondrealestate.com

BRE# 01728866

Ron Denhaan, Realtor


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