The Importance Of Getting A Pre-approved Loan

So you’ve decided you want to get onto that much talked about ‘property ladder’ and you’ve already been busy trawling the net for the perfect home. Looking for a new home can be an exciting and challenging experience. After all, buying a home is one of the largest investments you may ever make.

If you want to know how much your house will sell for in South Florida, Broward County go to Home Value or call Irene Medina.Realtor at 954-439-4851. 

 

It’s good to keep a level head and be realistic about what you can afford. Most of us, when buying a home, will need to borrow money to finance the purchase. So before you go any further, you need to find out how much you can borrow.

It’s important to shop around and explore your options so you can find the best deals out there! Thankfully, most lenders have online mortgage calculators so you can get a quick idea of how much you can borrow by simply adding a few details.

Once you have selected your ‘lending front runners’ give them a call to arrange a meeting.

When applying for a pre-approved loan you will need to provide some additional documentation, such as:

• Proof of deposit
• Proof of income
• Monthly expenses and other outgoings such as loans, credit cards and store cards.
• Tax Returns

As long as you meet the requirements then voilà – you will have a pre-approved loan. So now the real house hunting can begin…

What are the benefits of obtaining a pre-approval loan from your lender? 

• It’s FREE.
• Is valid for up to 3 months.
• It gives you clear guidance on how much money you can spend.
• You won’t be setting yourself up for disappointment if you think you can spend more than your lender agrees to lend you.
• It allows you to shop with confidence and bid at auctions should your dream home come onto the market.
• It shows your real estate agent that you are serious about buying a home. Some agents won’t spend their time showing you homes in-case you don’t come through with the financing.

What are the conditions of pre-approval?

• That all information supplied to the lender for assessing eligibility is true and correct.
• That the lender has received all documentation necessary to verify deposit, security, assets, liabilities and income.
• Verification of the personal and financial details.
• The lenders satisfactory assessment (including a valuation) of any property offered as security for your client’s loan(s).
• Whether Lenders Mortgage Insurance is required. If it is required (generally when the loan amount is for more than 80% of the value of the security property) the loan(s) will be provided only if the insurer agrees to provide the insurance. The borrower will also need to pay the Lenders Mortgage Insurance premium.

Once you’ve found your dream home, you will then need formal approval. Full approval of your loan can take as little as an hour or it may take a few days if valuations are required.

But before you apply for a pre-approved loan, make sure you are fully aware of the reason why loans are rejected. This way you can ensure you meet the criteria before applying – the last thing you want is lots of different loan applications appearing on your credit report!

What are the common reasons an application would be declined? 

• You can’t properly document your income. 
• Your credit rating is low. 
• You have too many inquiries on your credit file. All your loan applications will appear on your credit report. If there are too many this may make you’re your lender nervous as they may think you are not telling the full story. 
• Your situation has changed, for example you have recently changed jobs or got another type of loan. 
• The policy of the lender has changed. Some lenders will honor pre-approvals that are lodged before their policy changes. 
• Interest rates have increased; this as a consequence that the maximum amount that can be borrowed will decrease.
• If your loan amount is more than 80% of the property value.  

So remember when deciding to take that leap of faith on the property ladder, just remember to be prepared!

You need to take all your decisions seriously and take the time to prepare yourself through every aspect, so that finding your dream home is a positive and pleasant experience rather than a negative one.

The Pre-Approval Process

I just wanted to follow up with you on the next steps of buying your home. Let’s start with Pre-approval.

Pre-approval is a stronger commitment from a lender than prequalification. So being pre-approved can give you an edge when there are multiple offers on a home.

Here’s a basic list of what you might be asked for to get pre-approved for a home loan:

1. Social security numbers for you and your spouse if you’re both applying for the loan together. This allows your lender to run in an accurate credit check on you.
2. Copies of your checking and savings account statements for the past six months.
3. Documentation of other assets you might have like stocks or bonds.
4. A recent paystub that shows your earnings and a contact information of someone who can confirm that you work there.
5. A list of all credit card accounts with current balances.
6. The last two years of income tax returns. Each lender might have other requirements for your pre-approval.

If you have any questions, I’m always available to help. Just contact me at 954-439-4851.

When you hire Irene Medina and The Medina Real Estate Group, you hire a team of professionals that will “Stand by YOU Every Step of the Way” from start to finish. We pride ourselves in making sure that we keep your goals top of mind at all times and keep you informed at all times. Please read our reviews from happy clients on this site, as well as our blog.

We are in a sellers market again and you need a team that is very savvy when it comes to marketing your home. It is not a matter of just putting a sign on your home and putting in on our Multiple Listing Service. Our marketing is very internet intensive driven and we implement The Ballen Method on every property. 90% of all buyers find their home on the internet before they call a realtor. We make sure that your house is FOUND. Some of our marketing techniques are the following: We take a professional virtual tour of your home to put on the internet, along with various websites, individual property websites, social media sites and all the other popular sites. We also advertise to the international market. We market to all realtors in your area and to the surrounding neighborhood. We make sure you get the highest and best offer for your home. Their reputation of being a top notch real estate group is well known in the real estate industry. Your chances of getting your house sold quickly and/or your offer being accepted is greatly increased when you use The Medina Real Estate Group.

For Your FREE Home Value go to: Home Value

If you need to short sale your home, please go to:www.FLShortSaleServices.com for information on short sales and to calculate if you have equity in your home now or still need to short sale. We have a proven track record of approved short sales and deficiency waivers.

If you are a buyer looking to buy a home, we pride ourselves in making sure we listen to what your dream home consists of. It is all about you and your future home. We put YOU first! Go to: www.IreneMedina.net 

Irene Medina has been in the business of selling and buying real estate for more than 10 years. She became a short sale specialist and helped many homeowners avoid foreclosure and have their deficiencies waved when the market dropped. Market has shifted again and she continues to excel as a Listing and Marketing Specialist to help you get the most for your home in the quickest amount of time, with the least amount of stress! Irene and her team are an award winning team. When you choose Irene Medina and The Medina Group, you choose a team that will always put YOU first.

If you are a buyer looking to buy a home go to www.TheMedinaRealEstateGroup.com.

Client Testimonials

Irene Medina / Realtor This email address is being protected from spambots. You need JavaScript enabled to view it. / 954-439-4851 The Medina Real Estate Group www.TheMedinaRealEstateGroup.com

 

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