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Why you should you be prequailified before looking at any houses???

By Scott Godzyk

Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

February 27, 2011 01:32 AM

I can tell the market is improving by the shear increase in inquiries of homes for sale. Lately though i have been flooded with the same question over and over from potential buyers who are puzzled when i ask them if they have been prequailified for a mortgage. Most want to know why i want to know...

The simple answer is to make sure you "Mr and Mrs Buyer" can afford what you are looking at. Virtaully all sellers are requiring a preapproval letter to accompany any offer.

Your first step in the buying process before calling to look at house should be to be prequailified. As a buyer you need to know if you can get a mortgage in today's world of new banking regulations that are hindering the ability of many to even get a loan. The second reason is you need to know how much you can afford, what sales price you should be looking in and how much you will need for down payment and closing costs.

You do not want to look at a house priced over what you can buy, fall in love, make an offer and then get crushed when you can not get a mortgage on it.....

So Mr and Mrs Buyer being prequailified for a mortgage looks out for you as well as teh seller and they agent who will be taking the time to work with you and assist you through each steo of the buying process.

PLEASE SEE MY BLOG WITH TIPS AND ADVICE ON GETTING A MORTGAGE IN TODAYS MARKET.

http://www.trulia.com/blog/scott_godzyk/2010/10/where_do_i_is_start_if_i_want_to_get_a_mortgage

Updated Feb. 27, 2011

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Cindy Edwards

RE/MAX Checkmate - Johnson City, TN

CRS, GRI, PMN - Northeast Tennessee 423-677-6677

I won't take buyers out unless they are pre-qualified. It's a no brainer.

Feb 27, 2011 01:33 AM

Chuck Carstensen

RE/MAX Results - Elk River, MN

Minnesota/Wisconsin Real Estate Expert

Its really silly not to get pre approved. Must make sure you have the credit to buy!

Scott Godzyk

Godzyk Real Estate Services - Manchester, NH

One of the Manchester NH's area Leading Agents

Cindy i agree, and i get really nervous when a buyer states they will not get preapproved until they find a house, that usually means they will not be able to get a mortgage...

Feb 27, 2011 01:37 AM

Chuck it certainly is silly for abuyer not to want to be rpeapproved, it is done free of charge, takes relaitively no time and can be started over the phone with little to no hastle.

Feb 27, 2011 01:38 AM

Jeana Cowie

RE/MAX Real Estate Limited - Paramus, NJ

Broker Associate, ABR, CRS, GRI, SRES

Scott, They do not realize the importance of this, and that there is no cost to get pre-qualified. Once I explain it to them, they typically get it.

Feb 27, 2011 01:39 AM

Jamie Woods

Home Savings of America - Hudson, NH

Scott,

Definitely. When I was a MLO I always provided thorough, comprehensive pre-approvals meaning of course I have seen the applicant's W2's, bank statements, pulled their credit report, calculated the DTI's and got the AUS approval. I never sent applicants out to knock on doors or bother Realtors unless all this was done. Some wanted "pre-quals" (the useless letter sent out after verbally interviewing the applicant but not verifying anything). Also, if there's a particular property that they had in mind I would investigate the property for financing compliance and pre-determine if there is any potential for complications, delays or other issues. Such as a couple of summers ago a customer wanted a USDA loan on a Goffstown property with an in ground pool. But USDA in Washington had a 120 day moratorium issued on all properties with in ground pools. This was definitely useful info that was uncovered way early in the process and thereby skirted major complications. Another reason why you definitely want thorough pre-approvals done by a qualified professional.

Anyway, good post and best wishes in your continued success!

- Jamie

Mar 03, 2011 02:04 AM

Thanks for your comment Jamie, you have a great outlook, i need to find a great loan officer here in NH who shares your outlook

Mar 05, 2011 01:41 AM

Why you should you be prequailified before looking at any houses???

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