Once you have decided to be a first time home buyer Redmond or first time home buyer Renton first time home buyer that requires a big amount then the next step would be to get the pre-approval as well as plan the mortgage. But before you start to apply for the loan or any such thing it is better that you understand the procedure of the pre-approval as well as how it differs from the pre-qualification. The term pre-qualification refers to the procedure through which income, existing debt, savings, length of employment, etc. are analyzed to determine your loan eligibility.
The term pre-approval refers to the written documentation that shows you have the support of a lender who is willing to finance you. It means your loan application has been reviewed by an underwriter Depending upon your income, debt ratio and savings, the underwriter provides the amount you are eligible to borrow. Now you can shop around for houses that fit into that loan amount category. One thing that you really need to pay attention to is that the lender you choose is the one who understands your needs and requirements. The lender that you select should not only be able to provide you with the loan but should make sure that the loan that you select is the one that is the most appropriate for you. Apart from that the lender must also help you in managing that loan.
Once you have the pre-approval in hand, you would be able to shop around the place for the house. Even the sellers would take you more seriously because hey are aware that you have the pre-approval in your hand and thus the capacity to pay back the loan. The seller might also consider your lower bid if he wants to sell the house quickly.
As far as your monthly payments are concerned they would depend upon the loan program that you have opted for. Many lenders would provide you with a spread sheet that would list the various loan programs along with the monthly payments that you would have to pay. You can opt for the loan program that meets your own agendas whether long term or short term.
Another thing about the pre-approval is that you do not have to pay anything for the pre-approval and have only to gain from it.
The term pre-approval refers to the written documentation that shows you have the support of a lender who is willing to finance you. It means your loan application has been reviewed by an underwriter Depending upon your income, debt ratio and savings, the underwriter provides the amount you are eligible to borrow. Now you can shop around for houses that fit into that loan amount category. One thing that you really need to pay attention to is that the lender you choose is the one who understands your needs and requirements. The lender that you select should not only be able to provide you with the loan but should make sure that the loan that you select is the one that is the most appropriate for you. Apart from that the lender must also help you in managing that loan.
Once you have the pre-approval in hand, you would be able to shop around the place for the house. Even the sellers would take you more seriously because hey are aware that you have the pre-approval in your hand and thus the capacity to pay back the loan. The seller might also consider your lower bid if he wants to sell the house quickly.
As far as your monthly payments are concerned they would depend upon the loan program that you have opted for. Many lenders would provide you with a spread sheet that would list the various loan programs along with the monthly payments that you would have to pay. You can opt for the loan program that meets your own agendas whether long term or short term.
Another thing about the pre-approval is that you do not have to pay anything for the pre-approval and have only to gain from it.
SHARE
