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| *Ostroff, Fair and Company>>>Renting & Real Estate |
Pre-Approval on First Time Home Buying? |
some of my friends say that, i should go to the bank first and get my credit record checked and they'll give me a letter saying i can be approved for this much for a home loan and than start looking for houses? i never heard of it before, is this for real? is that the best way to do or should i go through brokers' banks? Hi! Yes, this is for real! Actually, there are two different, but very similar, 鈥減re鈥漵 that you need to be aware of. Getting pre-qualified for a mortgage means the lender only has your word on your credit, income, assets and liabilities, so a home loan or mortgage amount is not guaranteed. With a pre-qualification, no information has been verified. If you receive a letter from the lender, it may only state that you are likely to be approved for a mortgage. A pre-approval goes one step further than a pre-qualification. When getting pre-approved, you may receive a letter stating how much you qualify to borrow. Your lender will pull your credit report and find out what liabilities you have. However, not everything (namely your income and assets) is verified. Pre-approvals don't always guarantee financing since the buyer's information has not been verified. You will want to shop for your home quickly though. While a mortgage credit pulls (the lender checking your credit) will not decrease your score, multiple mortgage pulls outside of one month may decrease your score a few points. Spread that over a long period of time and your score may drop a decent amount. If you have any other questions, feel free to ask through my profile. Best of luck on buying your first home 鈥?it鈥檚 scary but exciting at the same time! I鈥檝e also included a link to our pre-approved mortgage page for you. Source(s): https://www.quickenloans.com/loan_progra... Yes, but only plan on borrowing 70% of what they offer you at most. most palces pre-approve you for more than you can actually afford. Your mortgage should be only 1/3 of your net salary. Do not let anyone pull your credit report until you have shopped around. Have them give you good faith estimates to compare interest rates, costs, fees and points. Some will require you buy hazzard or PMI insurance and you want to shop around for that, too. Shop, shop, shop. Call direct mortgage bank lenders and call brokers. Interview loan officers until you find one who listens more than they talk. You are looking for someone who cares more about what is the right loan for you than how much they are going to make on your loan. Get referrals from people you trust. You definitely want to be pre-approved before you start shopping. It gives you a stronger negotiating position when you are negotiating an offer and it will make certain you don't go out and fall in love with a home you can't afford to buy. Good luck 20+ yeaars as a direct mortgage lender first time homebuying need not be stressful.. it is only if you dont know where to start.. what to see a smooth step by step guide?.. here's where to go - http://www.arizona4pinoys.com/easy-guide... |
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