I’m sure you have heard the old saying, “Don’t put the cart before the horse”. This happens in real estate when you find the house you’ve been dreaming of and after putting money in escrow to hold the house, negotiating the contract to get the very best deal, you go to your mortgage lender and they tell you that you do not qualify for the amount needed to purchase the home.
You are upset, the seller is upset and we have to start all over again in the price range the lender has pre-qualified you for and none of the houses you are seeing compare with the one you really wanted. You may think this never really happens but I can assure you it happens all too often.
To make sure this doesn’t happen to you, I highly recommend that you get a pre-qualification letter. If you do not know of any mortgage lenders, I have a list of good, qualified lenders that will work with you to get you the very best loan and rate possible. Upon your request, I can help you decide on a loan type based on factors that will appear on your Good Faith Estimate.
The lender will use the following to determine if you’re pre-qualified for a loan:
- Employment History
- Credit History and Scores
- Monthly Income vs. Expenses to Determine Your Debt-To-Income
Once your prequalification has been completed you will know:
- How Much House You Can Afford
- How Much, if any, Cash You Will Need for a Down Payment
- What You Will Need to Complete and Provide to Simplify the Approval Process
There are many different types of loans to consider – FHA, VA, Conventional as well as some Bad Credit Loans still available. Together, we will find the best loan for your situation.
Once you’ve gotten pre-qualified as a buyer, you need to figure out how much house you can buy.
