The
excitement of buying a home can
kindle urgency to set up your
Home Tour. When you view homes
the American Dream gets closer
to reality. However, instead of
jumping into viewing homes
first,
The
first step in the home buying
process is getting qualified for
a
mortgage.
This will help you focus on the
amount of mortgage you may
obtain and the price range of
homes to consider.
A seller
will not negotiate in earnest if
you cannot prove that you can
obtain a mortgage. When you
present an offer to a seller,
you will provide written proof
from a lender that you have been
examined and qualify for a loan
-First
Stop – Get Pre-Approved.
This
focuses
you on a
price
range of
homes
that
matches
your
personal
finances,
instead
of
looking
at
properties
beyond
your
means.
It can
be very
disappointing
to have
to step
back to
a lower
price
range to
obtain a
mortgage.
Fluctuations
in
interest
rates
may
influence
the size
of home
you can
qualify
for.
When
rates
are low
you can
qualify
for more
house
than
when the
rates
are
high.
Various
loan
programs
can
influence
the
amount
you can
borrow,
the rate
that you
will
pay, and
the cash
required
These
factors will influence your
purchase. When you make these
decisions before you look at
properties, you reduce the
stress that accompanies
financing uncertainty - "First
Stop – Get Pre-Approved."
If you
find the
right
property,
you
should
make an
offer
right
away. A
delay
while
you
arrange
your
financing
might
allow
another
buyer to
buy the
property.
If
multiple
buyers
make
offers
at the
same
time, it
will be
the
buyer
with the
best
terms
who is
fully
qualified
that
will
win.
Learn
more
about
qualifying
for your
mortgage
at
Rand
Mortgage
Written
Proof of
Mortgage
Qualification
There
are two
kinds of
written
proof of
mortgage
qualification.
The
first is
a
pre-qualification
letter.
This
document
provided
by a
lender
tells an
interested
party
that the
buyer
has
provided
the
lender
with
certain
financial
details.
A lender
will
agree to
make a
loan
based on
a later
verification
of these
details.
In this
case,
the
lender
will not
investigate
a
buyer's
credit
or
verify
the
buyer's
income
or debts
prior to
issuing
a
pre-qualification
letter.
Oftentimes
the
wording
in
pre-qualification
letters
states
that
based on
information
provided
by the
buyer,
the
buyer
will
qualify
for a
certain
loan
amount.
The
lender
will
take the
buyer's
word for
information
such as
income
and
assets.
The
lender
does not
pull a
credit
report.
This is
the
weaker
of the
two
letters
because
a buyer
may
report
income,
assets,
debts,
or
credit
inaccurately,
and
might
not get
the
loan.
The
second
written
proof is
a pre-Approved
letter.
This is
the
stronger
letter
of the
two
because
the
lender
has
placed
you
through
a loan
approval
process.
The
lender
will
pull a
formal
credit
report
from one
or
several
credit
bureaus
to check
your
credit
and debt
information.
The
lender
will
verify
your
income
usually
through
a copy
of
recent
pay
stubs or
a copy
of the
buyer's
W2. This
type of
approval
takes
longer
because
of
verification
of the
buyer's
finances,
but it
provides
greater
likelihood
of loan
funding
