Buyers who want to set realistic expectations for a home purchase should consider obtaining a loan pre-approval letter from a lending institution prior to shopping for a home.
Buyers often have a wish list for the size, style, neighborhood and cost of a new home. They may begin searching for a home in glossy real estate home finders, on-line searches and just driving through neighborhoods they like. However, they would be wise to know up front the price range for which they qualify.
A trip to a lending institution which they trust is a good first step prior to shopping for a home. The buyer can complete an application (which may have a small fee) and find out the price range for which they qualify. Otherwise, they may shop outside their qualified range and waste their own and a realtor's time. They can become disappointed if they find a home that meets their wishes but for which they cannot obtain a loan.
A buyer's credit rating, income and other factors will affect the home price that a lender will approve. Once they obtain a price for which they are approved, they can begin their home search with realistic expectations. Some home owners want proof of a potential buyer's loan pre-approval prior to considering an offer by that buyer.
For a buyer to maximize their time searching for a home and to be better prepared to make an offer and probably shorten the time to close the sale, loan pre approval is an important step toward moving into the home of their choice.
Sunday, June 20, 2010
Subscribe to:
Posts (Atom)
