05/06/2015
10 tips for 1st time buyers Tip # 2
Get Pre-Approved
No matter how big your dream are, you will only be able to buy a home up to the maximum amount of your lender’s approval, unless of course you have unlimited amount of cash.
There’s nothing more frustrating than falling in love with a home and then discovering you can’t afford to buy it.
Consulting with a mortgage lender is the first step you should undertake in the home buying process. Almost all first-time buyers need a mortgage to finance their home purchase, so get prepared before you look.
What Is a Mortgage Pre-Approval?
Lenders offer borrowers either a pre-qualification letter or a pre-approval letter, but most Realtors recommend you get a pre-approval letter before you start home shopping.
A pre-qualification letter states the amount a lender thinks you’ll be able to borrow based on your income and credit profile without any actual documentation.
However, mortgage lending standards have tightened since the housing crisis, and all mortgage loans now require full documentation and verification of income and assets—so most sellers will only accept an offer from a buyer with a full pre-approval letter based on verified information.
Your home hunt will benefit with a pre-approval for two main reasons:
• First, you’ll have completed the credit check and paperwork requirements for a mortgage, so you’ll know your ability to finalize a home purchase. If the lender finds a problem with your credit or an error on your credit report, you’ll have time to fix it before making an offer.
• Second, since your documentation will already be in place, a mortgage pre-approval will likely speed up the process once you make an offer.
For more information contact The Jerez Group at 305-519-0969 or visit our website at
http://www.thejerezgroup.com
Tip #3 in tomorrow's article
I help foreign Investors to find great real estate opportunities in Miami
