nce you've decided to buy probable. Being really helpful,
a property, the first step the bank officer even prints out
is not to go house hunting. a form letter with your name and
Instead, you should find out what the pre-qualification amount of
you can borrow. In doing so, it $300,000. Wow, that was
is important to understand the easy...perhaps to easy?
difference between loan
qualification and approval. The problem with
pre-qualifications is they are
Pre-Qualified based on best guesses. The bank
officer looks at no hard facts.
Getting pre-qualified for a home When it comes time to actually
loan carries little if any weight apply for the loan, you can be
when it comes to actually getting assured the lending institution
the loan issued. Let's take a isn't going to be willing to
look at why. guess. In fact, you might be told
you don't qualify for a $300,000
Its time to buy your first home home loan when push comes to
and you've done the research. The shove. You might only qualify for
first step is to find out how $250,000. In nightmare
much you can borrow. Down to the situations, you might not qualify
bank you go for a sit down with a at all because of credit
friendly home loan officer. This problems. In short, home loan
person asks you questions about pre-qualification is a waste of
finances, salaries, credit and so time for the most part.
forth. You might even be asked to
fill out a short questionnaire. Pre-Approval
After a surprisingly short time,
the bank officer suggests a loan Getting pre-APPROVED for a home
amount of around $300,000 is loan is definitely your best
option. Getting pre-approved for without? The answer is obvious
a home loan is an excellent and leads to another advantage.
strategy because you actually go In the current market, it is
through the process. Issues such likely you will be bidding
as income, credit scores, against other parties for
personal wealth and so on are property. A seller is much more
resolved. At the end of the likely to select your bid because
process, the bank agrees to issue they know the loan process will
a loan up to a certain amount go smoothly. This can make all
contingent on an appraisal of the the difference when it comes to
home you eventually decide to closing a deal.
buy. The lender will produce a
letter indicating as much, and it Determining how much money you
is a very valuable letter. can borrow is the first step in
the purchase process. Just make
A pre-approval letter is instant sure you get a pre-approval
gold in the real estate market. letter, not pre-qualification
If you were selling a home, would guesses.
you prefer a buyer with a
pre-approval letter or one
About the Author:
Dan Lewis is with http://www.gwhomeloans.com - A San Diego mortgage company providing home equity loan, refinance and mortgages to San Diego home owners. Visit http://gwhomeloans.com/services.html to learn more about options for San Diego mortgages.
Source: www.isnare.com
