The benefits of a pre-approval and not a pre-qualification for Rockwall TX Home Loans.
A lot of consumers are not educated enough on how they should go about buying a home.
No question, this is a big decision, and one that can be either immensely stressful- or immensely enjoyable- depending on how you go about the home buying process of Rockwall TX Home Loans and the surrounding areas. 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. This article will cover all of these.
Education
The proper way to go about buying a home in Rockwall, Texas begins with getting preapproved for your home loan. Take note that we didn't say anything about getting pre-qualified because in today's mortgage industry it is meaningless. You should choose a mortgage banker that offers no cost preapprovals and homebuyer counseling. The process can be lengthy, but you must include two years of tax returns, one month of paystubs, two months of all your liquid asset account statements which include 401K's, IRA's, Checking, Savings, and stocks to give your mortgage banker authorization 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 lender needs this to analyze the date because: 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. You should have your mortgage lender calculate the remaining part of your initial investment, your taxes and insurance, what your closing costs are and whether or not there are any seller or lender contributions. This is one reason why you should consult with an experienced mortgage professional that can help you decide what the best loan program is for that fits your needs.
Upon getting pre-approved and after having your mortgage counseling session, you should know what the price range you are must comfortable with is. This will give you a "head start" on your Rockwall TX Home Loans and the surrounding area that gives you the "buying power of a cash buyer". When you submit an offer- have your mortgage banker send a preapproval letter that matches up with your offer to let the seller know that you are preapproved subject to inspections, appraisal and title work coming back clean. You won't have much stress wondering if you qualify, if something comes up on your credit report causing a delay or for you to be turned down from that loan.
Lifestyle Choices
You can't underestimate your full budget amount for your house payment and all of the 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 know that your income is going to be flat, you will be choosing the level of discretionary income you would want to use to reserve it for new cars, traveling, eating out,money for furnishing and updating your home, etc. It is important to seriously consider what final purchase price you are comfortable with to enhance your lifestyle after purchasing your home.
As always, we are ready 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 or email Joy: joybates@leader1.com.
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