PREQUALIFY FOR LOAN
Steps To HomeOwnership
Get with a Legitimate Local Lender and Get Pre-Approved First Before House Hunting.
In the old days, the buyers would go house hunting and when they have found their dream home, then they go to get pre-approved. Well, in today's market, that has proven to be putting the cart before the horse and least effective method in locating the home that are within the buyer's qualification .
Most lenders can pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate how much mortgage you qualify for. However, being pre-qualified and pre-approved are different things. Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc. When you are pre-approved, you know exactly what the maximum loan amount will be.
A pre-qualified letter is essence. Most sellers want to know they are dealing with a buyer that has been approve for a loan before entering into an agreement for the sale of their property. When you are pre-approved, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.
Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You'll also avoid being disappointed when going after homes that are out of your price range. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you're interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. Costs for pre-approval are generally nominal and lenders will usually permit you to pay them when you close your loan.
Call for more information or for a personal tour of any of new home builder models and/or specs inThe Greater Fort Hood, Texas area that you are interested in!