What You Should Know About Financing
|Ever wish you could just pay cash
$ for a home? You CAN if you get PRE-APPROVED for a mortgage, before you find a
When searching for your mortgage lender,
ask if they will issue a "PRE-APPROVAL" letter which only requires
that they appraise the home you find later in order to verify its value. If they
will issue such a letter with no other requirements except the appraisal, you
have just become a PRE-APPROVED CASH Buyer!
cost to be PRE-APPROVED is approximately $60.00 for a complete credit report.
The advantages of PRE-APPROVAL include:
1. Your purchase offer is taken much more
seriously by a Seller. Often, this allows you to buy a home for a lesser price
than if you "hope to get a loan."
will know exactly how much you can afford and avoid wasting time and effort
looking at homes you can't afford. You'll also avoid the frustration and
embarrassment of finding a home you want, only to find out you can't afford it.
3. You have more time to work out any financing
problems you might have. Examples include credit blemishes that are incorrect,
family and friend financing assistance, and restructuring your current debts.
4. Your purchase time is reduced by approximately
3-4 weeks because you won't have to wait on loan approval.
5. You can lock in your interest rate sooner in the buying process
if you expect rates to rise soon.