Buying A Home In Cleveland - The Complete Guide Part 2 of 7 - Getting Pre-Approved
In an effort to help educate those buying a home in Cleveland, we have put together a 7 part series that will explain the entire home buying process in detail. Although our focus will be on the Cleveland market, many of the ideas discussed can be applied to other areas of the country as well. Our first article, Step 1, was on "The Initial Consultation - Formulating A Game plan" . Please feel free to read it as it will give you a solid foundation in which to begin the home buying process.
This article focuses on "Step 2 - Getting Pre-Approved For A Loan."
Many people make the mistake of beginning the buying process by looking at homes, not only on the Internet, but also in person. While looking at homes is fun and exciting and certainly a big part of the home buying process, many potential buyers overlook the importance of getting pre-approved for a loan first.
There is nothing more disheartening than seeing the dreams of a home buyer crushed when they find out they cannot qualify for a loan on the home they have already fallen in love with. The pre-approval process is fairly simple and can often be done initially over the phone in a 10-15 minute conversation with a qualified mortgage professional, so please take this step seriously.
Whether you are buying your first home, you are a move-up buyer, or are relocating to Cleveland from out of state, having your finances in order is a critical step in the process. Even if you have purchased a home in the past, today's tough lending environment is creating challenges for all home buyers.
When the market was good, getting a loan was fairly easy. Buyers were able to put no money down, have marginal credit and still qualify to buy a home. Today, things are much different. Banks and lenders are much more conservative in their decision making due to the mortgage crises that has hit the financial markets. Credit and income requirements are constantly changing and have created a very unsettled marketplace. Because of this, it is more important than ever before to get pre-approved prior to looking at a home.
Here are the main benefits of getting pre-approved:
•1. You will find out how much you qualify for up front, saving you valuable time.
•2. An offer from someone who is pre-approved will be stronger than an offer by someone who is not.
•3. Since over 20% of all credit reports contain errors, the pre-approval process will help identify any potential problems and give you time to correct them.
•4. You will be able to aggressively make an offer, and with confidence, on a home with an approval letter in hand.
•5. Sellers will be more comfortable negotiating with a pre-approved buyer, which could lead to a more attractive price and terms.
There are many places you can go to get pre-approved, such as a bank, lender, or mortgage broker. Each one is a little different, so we suggest contacting one of each so you can do some comparison shopping. If you need help finding a lender or have specific questions, feel free to contact us. Dan has over 15 years experience in mortgage lending and can be a very helpful and unbiased resource.
Also, if you are relocating to Cleveland from out of the area, we recommend using a local mortgage professional who is familiar with some of the Cleveland area nuances such as point of sale inspections. Remember, all states and cities have different rules and guidelines when it comes to lending, so using someone local may make the process easier.
Getting pre-approved for a loan isn't the most exciting step in the process, but it is one of the most important. If you are buying a home in Cleveland, please do yourself a favor and get pre-approved before actively engaging in looking at homes.
If you would like to continue reading the Complete Guide To Buying A Home In Cleveland, click the link below to get to Step 3:
About The Authors:
This information is provided compliments of Amy and Dan Schuman, The Schuman Team Keller Williams Realty. The Schumans have worked with numerous professional athletes, business owners, and those relocating to Cleveland from out of the area.
If you are considering buying a home in Cleveland or surrounding suburbs,please contact the Schuman Team at 216-346-3235.
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Buying A Home In Cleveland Part 2 Getting Pre-Approved is the property of The Schuman Team and may not be duplicated or used without their written consent. ©Aug 2009