Plano TX Home Loans l Home Loans in Plano Texas

The benefits to a preapproval for Plano 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 

 The steps necessary to purchasing a home in Plano, Texas starts with getting pre-approved for your home loan. Take note that we didn't say anything about getting pre-qualified because in today's mortgage industry it is meaningless. 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.

It is important to note you will need to provide all pages of the bank statements, and will need to explain (source- as in prove up where money for deposits came from that went into your liquid asset accounts). Your mortgage banker needs to analyze the date to establish: 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. 

 Initial Investment 

 Numerous types of loan programs are available in the mortgage industry that range from Conventional loans with 5% down payment options to FHA loans with a 3.5% down payment as well as 100% financing on VA and USDA loans. 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 why you should consult with an experienced mortgage professional that can assist you with the best loan program for you. 

 After getting preapproved and having your mortgage counseling session- you will know what price range you should start looking in with comfort. This will give you a "head start" on your home loan in Plano TX and the surrounding area that gives you 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. This will relieve you of stress because you won't be wondering if you qualify for your loan or if something may show up on your credit report that you weren't aware of that can cause a delay or for you to be turned down for your loan. 

 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. If you are a younger professional that is just getting started in your career, it is important that you buy in the upper level of the qualifying range for your home purchase knowing that your 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. It is essential to consider what the final purchase that are you comfortable with to enhance your lifestyle after purchasing your new home. 

 As always, we are standing by to assist you with all that is mentioned above. Just go to http://legacyfinancial.com, email Joy Bates: joybates@leader1.com  or call 817-860-3232.