o you want to buy a home?
Statistics show that more 1. Pre-approval will determine
and more young single the maximum you can spend on a
people are buying homes. With house before you shop, so you
mortgage rates at an all time know what price range to target.
low, more programs to assist Many shoppers aim too high,
first time homebuyers, and lots bidding on a home that they later
of homes on the market to choose learn is beyond their means
from; it doesn't make sense to because of unforeseen debts or
keep paying rent. So, what should other financial factors, which
your first move be on the path to leads to disappoint in your
becoming a homeowner? search for the perfect home.
How Much Home Can You Afford? The 2. If helps your real estate
first step in the home-buying agent be more efficient. By
process is to determine how much knowing what your financial
home you can afford. You do this parameters are, your agent can
by contacting your bank, a spend more time looking for
mortgage lender, or looking houses that "fit" and less time
online for a pre-approval. A pursuing dead ends.
pre-approval is a simple
calculation that tells you the 3. When it comes time to write an
amount you'll be able to finance offer, you will strengthen your
through a loan and what your bargaining position if you have
monthly payment will be. that pre-approval. Your offer
will stand out in a case of
Why Should You Obtain a multiple offers for the same
Pre-approval? There are three house. Look at it from the
important reasons to obtain a seller's perspective. If you had
pre-approval. two offers on the table for your
house, one from a fully monthly expenses (for example
pre-qualified buyer and the other utilities, maintenance and repair
from an "I'll get around to that costs).
soon" buyer--to which offer would
you devote the most attention? A mortgage pre-approval is
generally good for 60-90 days,
It is important to remember that after which the lender may
the amount of mortgage you will require an update to the credit
qualify for is the maximum. It is report and/or other exhibits
the amount that the lender feels within your application file.
you can afford, but it is not Further, although the lender has
necessarily the amount that you issued a credit decision in
want to pay. It sometimes is advance, nearly always it will
advantageous to be conservative reconfirm the data that led to
here. Too many buyers simply rush the initial decision. If any part
off to the maximum level and some of your financial picture changes
find themselves strapped when it - be it credit, income, or asset
comes time to purchase necessary related - it is critical to alert
items (such as draperies, the lender of these changes so
additional furniture, new that your pre-approval can be
appliances and lawn and garden reissued and/or adjusted.
tools, for example) or when they
forget to factor in increases in
About the Author:
Joyce Boulan is a retired real estate agent who worked with many first time home buyers. If you are getting ready to purchase your first home or if you think you can't afford to purchase your first home, don't make another move until you have read this important information!
http://tinyurl.com/bpvrn
Source: www.isnare.com
