Getting Pre-Qualified

In today’s market, most sellers require a “pre-qualification” letter to accompany any offer to purchase. Quite simply the reason for a pre-qualification requirement is a direct result of lending institutions implementing more stringent lending policies resulting in fewer borrowers qualifying for home loans. Sellers are reluctant to enter into a contract with buyers only to find the buyers unable to secure the loan resulting in their property falling out of contract at a later date.
Buyers who are pre-qualified focus their search on homes priced within their market range saving time and expense. They also avoid the disappointment of selecting a home only to learn the home is out of their market range.

Reasons to get pre-qualified…

·With pre-qualification, buyers can determine which loan program best fits their needs and which program they qualify for.

-Buyers will know exactly how much they are qualified for.

·Buyers monthly payment will be pre-set. Allowing them to budget their expenses prior to making an investment in a home.

·Pre-qualification will show buyers what their down payment and closing costs will be.

·If you are a first-time buyer, you may qualify for a special first-time buyer program.

Shopping For A Lender

A very important part of purchasing a home is finding the right lender. Below are some characteristics you should look for and be aware of when choosing a lender.

Questions to ask while shopping for your lender…

What is his/her reputation within the community? How many loans do they close each year?

Is the company well known in the area? How long has the company been in business?

Does the lender have access to a wide variety of loan packages?

Can the interest rates be locked in and for how long?

Things to be aware of when shopping for a lender…

Quoted rates over the phone are rarely locked prices. This is one way the lender gets you to come to his office. Rates can be subjected to changes unless they are predetermined for a specific period of time.

Interest rates can change daily. A quote you get today may not be available at the same price tomorrow.

The interest rate you are quoted over the phone may not be a program that will fit your needs or situation.

Many lenders will discount their posted rates for well qualified customers.

Real Living Mortgage

Jill Richey is our Real Living Mortgage representative for the Newark/Heath Realliving Offices. If you would like to speak with Jill her office number is (740) 788-8311. Or click here to visit her web site.