As a homebuyer, what can you do to make your offer more appealing to a seller in a multiple offer situation? Our listing specialist has five tips.
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Getting a pre-approval prior to beginning the home-search process is incredibly important.
Doing this will take out any guesswork before you’ve already put in your time and money. However, there are some important things to keep in mind.
First of all, you should know the difference between a pre-qualification and a pre-approval. A pre-qualification is more like an estimate of what you can be pre-approved for. To determine this, you should talk to your lender about your income, liabilities, and assets.
Pre-approval, on the other hand, is a lot more complex. When it comes to pre-approvals, lenders work to decide your buying power based on credit, debt-to-income ratio, and also by determining which loan program you are best suited for.
With this in mind, I want to let you in on the five things you should consider related to getting a pre-approval letter.
- Talk with your lender no matter what. Your lender is going to be essential to helping you navigate the finer points of this process.
What loan program is the best fit for you? There are many types of loan programs that exist. With the help of your lender, you should find one that matches well with your needs, whether it is an FHA loan, conventional loan, some form of down payment assistance, or one of the many other options out there.
- Figure out your monthly payments. Determining your monthly payments, which include taxes and insurance, should primarily be about deciding what is best for your individual circumstances. If you are in a townhome or condo, monthly payments will also include the association fees.
- Terms of the loan. Make sure you are aware of things like what your percentage will be, how long the loan will last, and whether you’ll be subject to any penalties if you choose to pay it off early.
- You must be pre-approved to submit an offer. A pre-approval letter should be property-specific.
If you have any other questions, feel free to get in touch by giving us a call or sending us an email. We look forward to hearing from you.