The benefits of a preapproval for Coppell TX Home Loans.
Many consumers are not informed on the proper way for buying a home. This can be extremely stressful or enjoyable depending on how you choose to go about the home buying process for homes in Amarillo TX and surrounding areas. The key is to take the proper steps to educate yourself on your buying power, initial investment, and taking some time to think about your lifestyle choices. We will discuss each of these in this article.
Education
The proper way to go about buying a home in Coppell, 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 lender that offers you no cost home buyer counseling and pre-approvals. 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. You will need to provide all pages of the bank statements, explain and prove where the money for deposits came from that was deposited into your liquid asset accounts. Your mortgage banker needs to analyze the date to establish: 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
There are many different types of loan programs available in the mortgage markets ranging from niche 100% financing which include VA and USDA loans, to FHA loans (with 3.5% down payment), to Conventional loans that begin with 5% down payment options. Depending on how the loan and preapproval is structured- you should also have your mortgage banker estimate the remaining part of your initial investment, taking into consideration closing costs, taxes and insurance on your new home purchase, and whether there are any seller contributions or lender contributions involved. This is just one reason why you should consult with an experienced mortgage professional who can help you decide the best loan program for you and your unique needs.
After getting preapproved and having your mortgage counseling session- you will know what price range you should start looking in with comfort. Also, you will have a "head start" on your Coppell TX Home Loans and the surrounding areas that gives you the ability to have the "buying power of a cash buyer". After you submit your offer, have your mortgage banker send a pre-approval letter that matches your offer to let the seller know that you are cleared to be pre-approved for inspections, for title work to come back clean, and to get an appraisal. 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. If you are a younger professional that is just getting started in your career, it is important that you buy in the upper level of the qualifying range for your home purchase knowing that your 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. To enhance your lifestyle upon purchasing your home, you need to consider what the final purchase you are comfortable with is.
Our team is standing by 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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