If you are currently renting, have been with your employer for at least two years and have a credit score in the mid-to-high 600 range it is likely that you can qualify for FHA or Conventional financing.
Tired of renting but you think you can’t afford to buy a home? Review the scenario below and see why you can’t afford NOT to buy a home.
The real estate market is rebounding and purchasing a home is a great investment that provides specific financial advantages, including equity buildup, potential increase in value, and tax benefits. So, again, ask yourself if you can really afford to keep renting.
After you have made the decision to purchase the next steps are to get pre-approved for a mortgage.
Pre-Qualifiction vs. Pre-Approval
Pre-qualification is usually based on a few questions provided by the buyer but nothing has been verified by the lender. This process doesn’t have the same advantages of a pre-approval.
Pre-approval requires a complete application with credit reports and verification of information. The Mortgage Company will issue a commitment subject to a specific interest rate and points and a satisfactory appraisal when the property is identified.
Time limits are usually placed on pre-approval commitments. It is recommended that you be ready to look at homes and make a decision after you receive your pre-approval commitment.
The advantages of being pre-approved are:
- Viewing homes that meet your search criteria in the correct range of your loan amount.
- Avoiding disappointmentby looking at homes that you can afford.
- Saving money with a seller who is confident about taking their home off the market with buyers who have a definite loan commitment (it could mean the difference between a seller selecting your offer vs. another).
- Closing more quickly: the lengthiest procedure in the home buying process is usually the mortgage approval.
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While you are here I would also like to offer you a FREE (no obligation) home buying consultation. YES, I would like to schedule a Free Home Buying Consultation .