The Importance of Pre-qualification
Getting pre-qualified before you start searching for a new home is very important. The first reason why you should get your credit and financial information checked by a qualified adviser is that you may learn that you qualify for more or less than you think. It will also uncover unknown credit issues which should be addressed prior to shopping for a new home.
Credit and Renting
Renters often overlook the importance of credit. Many of the best homes are listed in the Muliple Listing Service (MLS). REALTORS are involved in listing these homes for a fee to the landlord. There is no charge to the tenant.
A landlord chooses to list with a REALTOR for 2 main reasons. One is that the landlord doesn't have to respond to inquiries into the home themselves or be concerned with meeting potential tenants at the rental home. The second reason is that REALTORS have better access to tools that help qualify potential tenants. Almost every MLS listing will require a credit report, pay stubs and an application. Many also require background checks. Knowing what your credit report holds will help you resolve negative information. This will allow you to negotiate for better terms and increase the chances that you'll find a quality rental home at a fair price.
Credit and Rent To Own
Rent to own is another reason for getting pre-qualified. Often, rent to own homes will be rented for less than the prevailing market rents in an area. This is due to the rent to own buyer's ability to later close on the home and the incentive to take better care of the home. Much of the rental risk is shifted to the tenant/buyer resulting in a lower rent. In addition, putting down a larger down payment also helps to keep the rent low. Credit reports play an important part in a rent to own purchase as all parties will need to estimate how long the rental period lasts and when the purchase will be expected to happen. Experienced lenders will be able to estimate the time frame and help shorten it by suggesting credit repair solutions.
Credit and Buying
No contract will be accepted by a seller without some proof from the buyer that they are qualified to buy. This can either be a proof of funds (if the buyer has cash and no loan) or a pre-approval letter from a lender. Pre-approval letters can be generated in a matter of hours. In some cases, the lender will need to help the buyer improve credit to qualify. The lender can also help qualify the buyer for special programs like the VA loan down payment assistance program ($10,000), Illinois Housing Development Assistance loans or other down payment assistance or low down payment programs.
For pre-qualification in Plainfield, Aurora, Oswego, Naperville, Yorkville, Shorewood, Joliet, Bolingbrook, North Aurora, Geneva, Batavia, St. Charles, Woodridge, Lisle, Romeoville, Minooka, Channahon, New Lenox or any other west or southwest suburb of Chicago. Please visit www.qualify-to-buy.com and fill out the form at the right of the homepage and our experienced REALTORS and Home Loan Specialists will contact you to help you get pre-qualified for your new home.
For direct assistance please email steve@roakehomes.com or lculotta@culottagroup.com or call Nextage Realty Solutions at 630-423-5890.
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Originally posted to www.qualify-to-buy.com on 10/7/12.
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