PreApproval for Summit NJ Real Estate Buying Really Is Important

By
Real Estate Agent with Kristin Balsley

Every morning when you tune into any media broadcast, you're bound to hear about the subprime crisis. It can be scary news, particularly if you're purchasing Summit NJ real estate in the near future. While many of the families in the midst of the subprime crisis can't be helped right now, getting preapproved for the perfect mortgage loan is essential to keeping you and your home out of the hands of subprime lenders who can endanger your right to own a home.

Understanding Preapproval

Getting preapproved for a mortgage simply means sitting down with a lender before you've ever shopped for Summit NJ real estate. Your lender will look at your current earnings and debts and let you know what you can afford in terms of a home purchase price. There are many reasons you might want to chat with a lender before you get started. First, it serves as a signal to the lender that you want a home enough to understand the financial obligations before you go on a shopping spree. Second, it lets both the buyer and the real estate agent know that you are truly part of the buying process. You've shown your intent to buy just by talking with a lender up front.

Before Preapproval

If you think preapproval is the right direction for you before speaking with a Summit NJ realtor, there are several things you should gather. First, grab your bank statements from the past two months, your pay stubs from the past two months, and your W-2 forms and tax returns from the last two years. If your spouse is to be part of the loan process, he or she will need similar documentation. Next, make a list of all of your debts, the monthly payments on those debts, and the total balance due on those debts. This will help your lender understand how much money you have to work with each month. Finally, make an appointment with a lender to get preapproved for a Summit NJ real estate property. Walking in off the street may press the lender for time.

After Preapproval

Once your lender has let you know the price tag on the Summit NJ real estate property you can afford, give a realtor like Kristin Balsley a call. She can help you see the homes in your price range, and in just a few weeks, you could be relaxing in the Summit NJ real estate property of your dreams without the hassle of waiting for bank approval.

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