WHY IS IT A GOOD IDEA FOR SANTA ROSA HOME SHOPPERS TO GET PRE-QUALIFIED In Todays tough financial world it pays off to get good advice. I wanted to pass on to my clients what I think qualifies as that very thing. I think it makes good financial wisdom to if you are shopping for a home, get Pre-Qualified. With that said, let me say that getting pre-qualified for a mortgage is a quick and easy process. When you set an appointment with HOME FUNDING CORP in SANTA ROSA California, We will ask you for some basic information concerning yourself. Based on what you share, you can know whether you qualify for a mortgage. Pre-qualification questions may include the following; What is your annual income, your credit score or credit rating, have you recently become self-employed, do you own more than 25% of a business, how much money do you have in the bank? We may also ask whether youve had a bankruptcy, short sale or foreclosure within the last few years; and whether youre a U.S. citizen. Your answers to these questions can a help us determine for what mortgage programs you may be eligible. For example, if you have very little money in the bank and plan to buy a home with two units or more, you will most likely be limited to pre-qualify for FHA mortgages and VA loans. if your credit rating is high and you have no outstanding judgments or liens, they may pre-qualify you for mortgage products which are unavailable to buyers with low credit rating. Based on the information you convey, MEGASTAR will be able to assign your purchase to a maximum purchase price. This enables you to look with-in the right price range and to evaluate your housing budget. Remember a mortgage pre-qualification is an easy process. But its accuracy is only as good as the information give. Thats why the Next step in my good advice is to get pre-approved for a mortgage. Even though a pre-qualification is good , a pre-approval is better! Yes it takes more time than getting pre-qualified, but the extra time will pay off! The pre-approval process, will go deeper as compared to a pre-qualification. In addition to being asked about income, assets, and credit, you will be asked to prove it! As an example, you will be asked about your money in the bank and whether its from your job or, from a 401(k) withdrawal, or from a cash gift for a down payment, or, other sources. Funds will be verified with bank statements. Your most recent W-2s and tax returns will be reviewed in order to confirm your eligible income. This figure is then compared to your credit report to determine your personal debt-to-income ratio. Debt-to-income is a key mortgage qualification standard. Buyers with a debt-to-income ratio below 40% may be eligible for all available loan types include conventional financing, FHA and VA mortgages, and USDA. Buyers with a DTI between 40-45% may be limited to products such as the FHA or VA. Pre-approvals unlike Pre-qualifications, uncover hidden collections, judgments and liens which may stand between you and your approval. Interestingly enough over 25% of Americans are harmed by credit report errors. If you are one of them, finding a credit report error after youre under contract for home can come with a significant cost, such as the loss of your earnest money deposit. For all of these reasons, most sellers and agents insist that home buyers submit a valid pre-approval letter along with their initial offer for the home. Sellers dont consider offers from shoppers who havent taken the time to determine if they can even get approved for a loan. This is why pre-approval letters are typically required to even make an offer on a home.
Posted on: Fri, 14 Mar 2014 19:18:46 +0000
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