The benefits of a preapproval for Princeton Texas Home Loans.
Many consumers are not informed on the proper way for buying a home. This can be extremely stressful or enjoyable depending on how you choose to go about the home buying process for Princeton Texas Home Loans and the surrounding areas. The key is to take the proper steps to educate yourself on your buying power, initial investment, and taking some time to think about your lifestyle choices. This article will cover all of these.
Education
The steps necessary to purchasing a home in Princeton, Texas starts with getting pre-approved for your home loan. Notice we did not say get prequalified- in today’s world a prequalification is not meaningful. It is important to choose a mortgage lender that can offer no cost pre-approvals and home buyer counseling. The process can be lengthy, but you must include two years of tax returns, one month of paystubs, two months of all your liquid asset account statements which include 401K's, IRA's, Checking, Savings, and stocks to give your mortgage banker authorization 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 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.
Initial Investment
Many types of loan programs are available in the mortgage markets that range from 100% financing on VA and USDA loans, to FHA loans with a 3.5% down payment, and Conventional Loans that start with a 5% down payment option. 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.
Upon getting pre-approved and after having your mortgage counseling session, you should know what the price range you are must comfortable with is. Also, you will have a "head start" on your Princeton Texas Home Loans and the surrounding areas that gives you the ability to have the "buying power of a cash buyer". Have your mortgage lender send a pre-approval letter that matches up with the offer you just submitted so that the seller knows to get you pre-approved for inspections, an appraisal, and for title work to come 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. If your income is projected to increase, you may want to buy at the upper end of the range that you qualify for in terms of your home purchase since you know more discretionary income is on the way. If you are on a flatter income, you want to choose what level of discretionary income you want to reserve for new cars, for you to travel, for you to eat out, and for money to furnish and update your home. It is important to seriously consider what final purchase price you are comfortable with to enhance your lifestyle after purchasing your home.
As always, we are standing by to assist you with all that is mentioned above. Just go to http://legacyfinancial.com or call Joy Bates with the Legacy Group of LeaderOne Financial at 817-860-3232 or email Joy: joybates@leader1.com.
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