The benefits of a preapproval (not prequalification) for Desoto TX Home Loans
Many consumers are not informed on the proper way for buying a home. No question, this is a big decision, and one that can be either immensely stressful- or immensely enjoyable- depending on how you go about the home buying process of Desoto TX Home Loans and the surrounding areas. It is essential that you take the proper steps to keep your self educated on the initial investment, the buying power, and to take some time to think about your lifestyle choices. We will discuss each of these in this article.
Education
The proper way to go about buying a home in Desoto, Texas begins with getting preapproved 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. It is important to choose a mortgage lender that can offer no cost pre-approvals and home buyer counseling. During the course of this process, you will provide two years of tax returns, one month's full paystubs from recent job, and two months of all your liquid assets accounting statements that include-checking, savings, stocks, 401K' and IRA's so that you can authorize your mortgage lender to pull your credit report. It is essential that you provide all page of the bank statements as well as explain these meaning prove where the money for deposits came from that went into your liquid asset accounts. The purpose of your mortgage banker analyzing this data is to establish the following: 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 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 one reason why you should consult with an experienced mortgage professional that can help you decide what the best loan program is for that fits your 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. This will give you a "head start" on your home loan in Desoto TX and the surrounding area that gives you 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. 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 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. 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 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.
Comments(0)