Mansfield TX Home Loans l Home Loans in Mansfield Texas

The benefits of a preapproval (not prequalification) for a home loan in Amarillo TX 

 A lot of consumers are not educated enough on how they should go about buying a home.

 This can be extremely stressful or enjoyable depending on how you choose to go about the home buying process for Mansfield TX Home Loans and 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. We will discuss each of these in this article. 

 Education 

 The proper way to go about buying a home in Mansfield, Texas begins with getting preapproved for your home loan. Notice we did not say get prequalified- in today’s world a prequalification is not meaningful. You should choose a mortgage lender that offers you no cost home buyer counseling and pre-approvals. 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. 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 banker needs to analyze the date to establish: 1. How much home you can afford. 2. What type of initial investment and loan structure that is best for you and 3. What house payment you qualify for and how much you can afford to pay 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 the way your pre-approval and loan is structured, you should have your mortgage banker estimate the remaining initial investment, calculate your taxes and insurance on your new home payment, look at your closing costs and determine whether or not there are lender or seller contributions. This is why you should consult with an experienced mortgage professional that can assist you with the best loan program for you. 

 You will know what price range you should start looking in with comfort after you get pre-approved and you have your mortgage counseling session. You will also have a “head start” on your Mansfield TX Home Loans or surrounding area that approaches you having the “buying power of a cash buyer”. After you submit your offer, have your mortgage banker send a pre-approval letter that matches your offer to let the seller know that you are cleared to be pre-approved for inspections, for title work to come back clean, and to get an appraisal. 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 

 The importance of knowing your full budgeting of your entire house payment and all other monthly obligations cannot be underestimated. 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 ready to assist you with all of the 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.