Why You Should Get Pre-Approved with a Lender..

The Mortgage process may seem intimidating, especially if you're a first home buyer, but it doesn't have to be. If you choose a good reputable lender, the process will be relatively painless and stress free. 

Getting pre-approved for financing is the first step in the homebuying process and it lets the seller know you're a serious, ready and able buyer.

How Much Can You Afford?

Getting a full document pre-approval is an important step in the home buying process.  It let us know exactly how much home you can afford and we don’t waste precious time  looking at properties that are not within your price range.

Þ It gives you negotiating power

Þ It lets the seller know your financing is certain and you are a serious potential buyer.

Þ It sets you apart from other buyers

Þ It makes the process go more quickly and smoothly

The process encompass an in-depth assessment by a licensed loan officer of your credit score, tax returns, bank statements, and paycheck stubs etc. to determine your loan amount.

Common Mortgage Loan Types:

· Conventional Mortgage. This is the most commonly used type and usually has the best rates.

· FHA Mortgage

· VA Loan

· USDA Rural Housing Loan

· Adjustable Rate Mortgage (ARM)

· 203k Rehab Loan

· Mortgage Insurance. Alright, this isn't a mortgage type, but you need to know about it!

 Up-Front Cost

You are responsible for upfront costs when you buy a home. First there is earnest money, which is a small deposit that lets the seller know you're serious about buying the home. Earnest money is typically 1% of the purchase price and usually submitted upon acceptance of the offer. A second upfront cost is the down payment, which is usually 3%- 20% of the cost of the home. A third upfront cost will be for credit reports, appraisals, and other loan costs, which may be financed into the loan, depending on the loan program. Lenders have different requirements for down payments.

Additional Up-Front Expenses

Make sure you are prepared for additional expenses of buying a home. Additional expenses like the home inspection usually between $350-$500 and termite inspection usually between $70-$100.

In addition to the down payment and upfront costs, there are closing costs that can run about 3%-3.5% of the purchase price.