The benefits of a preapproval (not prequalification) for Dallas 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 Dallas TX 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. We will discuss each of these in this article.
Education
The steps necessary to purchasing a home in Dallas, Texas starts with getting pre-approved for your home loan. 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 lender that offers you no cost home buyer counseling and pre-approvals. 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. 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
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 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. Also, you will have a "head start" on your Dallas 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. 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. 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. 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.
Our team is standing by 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.
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