The First Step
May 29, 2012
For almost anything you want to do in life there is always a first step. The purchasing of a home is no exception. It once was the case that the first step was to call a real estate professional, set up an appointment, discuss your wants, needs and your finances. In today's world, things are not much different. However, the real estate professional will direct you to get yourself preapproved for a loan. Preapproval is a step beyond prequalified. Preapproval means that the lender has review the information you provided, verified your credit scores and income and established the amount of mortgage for which they would approve you.
This preapproval letter is the important first step for purchasing a home.
Why? It sets the parameters for the price range in which to seek a property. Looking at homes you can't qualify for leads to disappointment in the homes that better fit your price range. Also, in the present real estate environment with the limited number of homes available, having that preapproval letter allows you to make a sold offer when you find the property you wish to purchase. Most seller will want the p[reapproval letter to accompany an offer.
Many prospective home buyers begin their search for a home on the Internet. This is a good way to educate yourself about what to expect in a home of a certain price. While this can be a first step in the decision to purchase a home, unless you have money to pay all cash, you will be well advised to seek out a mortgage representative and actually obtain the preap[proval document that sets your purchasing power.
For almost anything you want to do in life there is always a first step. The purchasing of a home is no exception. It once was the case that the first step was to call a real estate professional, set up an appointment, discuss your wants, needs and your finances. In today's world, things are not much different. However, the real estate professional will direct you to get yourself preapproved for a loan. Preapproval is a step beyond prequalified. Preapproval means that the lender has review the information you provided, verified your credit scores and income and established the amount of mortgage for which they would approve you.
This preapproval letter is the important first step for purchasing a home.
Why? It sets the parameters for the price range in which to seek a property. Looking at homes you can't qualify for leads to disappointment in the homes that better fit your price range. Also, in the present real estate environment with the limited number of homes available, having that preapproval letter allows you to make a sold offer when you find the property you wish to purchase. Most seller will want the p[reapproval letter to accompany an offer.
Many prospective home buyers begin their search for a home on the Internet. This is a good way to educate yourself about what to expect in a home of a certain price. While this can be a first step in the decision to purchase a home, unless you have money to pay all cash, you will be well advised to seek out a mortgage representative and actually obtain the preap[proval document that sets your purchasing power.
posted by shirley harry at 8:28 AM
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