Texas Home Loans

The benefits of a preapproval for Texas Home Loans

 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 homes in all over Texas. 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. Each of these will be discussed in this article. 

 Education 

 There are many steps to buying a home in Texas this is one and it begins with getting pre-approved 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 banker that offers no cost preapprovals and homebuyer 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 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 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 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. 

 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 Texas Home Loans and the surrounding areas that gives you the ability to have 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 

 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 essential to consider what the final purchase that are you comfortable with to enhance your lifestyle after purchasing your new 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. You may also send Joy an email: joybates@leader1.com.