The benefits of a pre-approval and not a pre-qualification for Grandview TX Home Loans.
A lot of consumers are not educated enough on how they should go about buying a home.
Of course this is a big question that can stressful or enjoyable, it just depends on the steps you take in the home buying process for Grandview 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. Each of these will be discussed in this article.
Education
There are many steps to buying a home in Grandview, TX, this is one and it begins with getting pre-approved for your home loan. Notice we did not say get prequalified- in today’s world a prequalification is not meaningful. You should choose a mortgage banker that offers no cost preapprovals and homebuyer counseling. During this process, you will supply two years tax returns, one month’s full paystubs, and two months of all your liquid assets accounts statements- Checking, savings, stock accounts, 401K, IRA’s are all examples of your liquid asset accounts and an authorization for the mortgage banker to pull your credit report. It is essential that you provide all page of the bank statements as well as explain these meaning prove where the money for deposits came from that went into your liquid asset accounts. The purpose of your mortgage banker analyzing this data is to establish the following: 1. How much home you can afford. 2. What type of initial investment and loan structure is best for your unique needs and 3.What level of house payment you qualify for and are comfortable with paying 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. 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 why you should consult with an experienced mortgage professional that can assist you with the best loan program for you.
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 Grandview TX Home Loans and the surrounding area that gives you the "buying power of a cash buyer". Have your mortgage lender send a pre-approval letter that matches up with the offer you just submitted so that the seller knows to get you pre-approved for inspections, an appraisal, and for title work to come 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
The importance of knowing your full budgeting of your entire house payment and all other monthly obligations cannot be underestimated. 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. For those on a flatter income trajectory- you will be choosing what level of discretionary income you may want to reserve for new cars, travel, eating out, money for furnishing or updating your home, etc. It is essential to consider what the final purchase that are you comfortable with to enhance your lifestyle after purchasing your new home.
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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