The benefits of a preapproval for Houston TX Home Loans
Many consumers are not educated on the proper way to go about buying a home. Of course this is a big question that can stressful or enjoyable, it just depends on the steps you take in the home buying process for Austin Home Loans and the surrounding areas. You must take the steps necessary to educate yourself on your buying power, take some time to think about your lifestyle choices, and the initial investment. Each of these will be discussed in this article.
Education
This is the proper way to go about buying a home and to get preapproved for your Houston TX Home Loans. Please note that we did not say to get pre-qualified, in today's mortgage world a pre-qualification means nothing. You should choose a mortgage banker that offers no cost preapprovals and homebuyer counseling. During this process, you will supply two years tax returns, one month’s full paystubs, and two months of all your liquid assets accounts statements- Checking, savings, stock accounts, 401K, IRA’s are all examples of your liquid asset accounts and an authorization for the mortgage banker to pull your credit report. You will need to provide all pages of the bank statements, explain and prove where the money for deposits came from that was deposited into your liquid asset accounts. Your mortgage lender needs this to analyze the date because: 1. How much home you can afford. 2. What type of initial investment and loan structure is best for your unique needs and 3.What level of house payment you qualify for and are comfortable with paying each month.
For more information on a mortgage pre-approval for your home loan, visit the U.S. Bank National Association website @:
https://www.usbank.com/mortgage/pre-qualification-pre-approval.html
Initial Investment
There are many different types of loan programs available in the mortgage markets ranging from niche 100% financing which include VA and USDA loans, to FHA loans (with 3.5% down payment), to Conventional loans that begin with 5% down payment options. Depending on how the loan and preapproval is structured- you should also have your mortgage banker estimate the remaining part of your initial investment, taking into consideration closing costs, taxes and insurance on your new home purchase, and whether there are any seller contributions or lender contributions involved. This is just one reason why you should consult with an experienced mortgage professional who can help you decide the best loan program for you and your unique needs.
After getting preapproved and having your mortgage counseling session- you will know what price range you should start looking in with comfort. Also, you will have a "head start" on your Houston TX home loans and the surrounding areas that gives you the ability to have the "buying power of a cash buyer". When you submit an offer- have your mortgage banker send a preapproval letter that matches up with your offer to let the seller know that you are preapproved subject to inspections, appraisal and title work coming back clean. You will also have much less stress- as you will not be wondering if you can qualify or if something shows up on your credit report that may cause a delay or for you to be turned down.
Lifestyle Choices
It is important for you to not underestimate the budget of your entire house payment and all other monthly obligations. You have numerous options. For those whose income is projected to increase (like a younger professional getting started in their career), you may elect to buy at the upper end of your qualifying range in terms of house purchase knowing more discretionary income is on the way. For those on a flatter income trajectory- you will be choosing what level of discretionary income you may want to reserve for new cars, travel, eating out, money for furnishing or updating your home, etc. To enhance your lifestyle upon purchasing your home, you need to consider what the final purchase you are comfortable with is.
Let us assist you with your Houston TX Home Loans. Just go to http://houstonhomemortgageloan.com or call Joy Bates with the Legacy Group of LeaderOne Financial at 817-860-3232 or toll free 888-860-3232.
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