Why Do I Need to be Pre-Approved?
It is very important to speak with a mortgage officer as soon as you know you are going to start the process of purchasing a home. Before you start searching for your new home you should be very clear about what you can afford. The last thing you want is to enter into a contract, only to find out you are unable to meet the requirements for the loan, especially with REO (Real Estate Owned, or bank owned), properties because of the time constraints on these types of closings. Having a pre-approval in your hands expedites the process and makes your offer comply with the guidelines of any lending institution.
When you have decided that it is time to buy a house, your first step should be to find a qualified mortgage professional whom you feel can best guide you through this process. This should be done even before you visit your first prospective house. Be open and candid about your financial situation, your income and your monthly expenses. Once you have been pre-approved you will know how much you are able to afford to spend on your new home and you will have a good idea about what your monthly mortgage payment will be.
Also, be sure to understand the difference between pre-qualification and pre-approval. To issue a pre-qualification the loan officer will usually take your word on information such as income and debts, pull your credit and give you a figure right there in the office. With a pre-approval, they actually submit your information through a program with a lender and have a firm commitment securing your ability to obtain a loan and the necessary conditions that must be met.
A pre-approval also prevents mortgage officers from trying to undercut each other by making promises regarding time frames, the amount they can get you qualified for, your interest rate, their fees, etc. and then being unable to follow through with those promises. With a pre-approval, you have all of this information in writing so there should be no unexpected changes along the way.
Island Advantage Realty
Island Advantage Realty, LLC has established itself as an innovator and leader in the REO market throughout Metropolitan New York and Long Island. With 20 years of experience handling foreclosed and residential properties, you can rely on our knowledgeable team of agents to assist you with all of your Real Estate needs. Trust the experts. Trust Island Advantage.
Island Advantage Realty knows that your privacy is important to you. That's why we want you to know that your information will never be sold or dissemination by us to anyone without your permission.
How Much Home Do I Qualify For?
Income. Debt. Down Payment. Closing Costs. Two Years Income Tax Returns. Assets. Liabilities. IRAs. You want WHAT? Just what can I afford?
Buying a home in today's marketplace is a bit intimidating. And your new home purchase is likely to be one of the most important decisions you've ever had to make. Usually it's one of the single most valuable assets you'll own.