The benefits of a pre-approval and not a pre-qualification for Corpus Christi, TX Home Loans.
Many consumers are not educated on the proper way to go about 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 Corpus Christi, TX and 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
The proper way to go about buying a home in Corpus Christi, 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. 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. 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 lender needs this to analyze the date because: 1. How much home you can afford. 2. The type of loan structure and initial investment that best fits your needs and 3. What type of house payment you feel comfortable paying for and qualify for.
Initial Investment
Many types of loan programs are available in the mortgage markets that range from 100% financing on VA and USDA loans, to FHA loans with a 3.5% down payment, and Conventional Loans that start with a 5% down payment option. Depending on the way your pre-approval and loan is structured, you should have your mortgage banker estimate the remaining initial investment, calculate your taxes and insurance on your new home payment, look at your closing costs and determine whether or not there are lender or seller contributions. 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.
You will know what price range you should start looking in with comfort after you get pre-approved and you have your mortgage counseling session. Also, you will have a "head start" on your Corpus Christi,TX Home Loans and the surrounding areas that gives you the ability to have 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. This will relieve you of stress because you won't be wondering if you qualify for your loan or if something may show up on your credit report that you weren't aware of that can cause a delay or for you to be turned down for your 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 are on a flatter income, you want to choose what level of discretionary income you want to reserve for new cars, for you to travel, for you to eat out, and for money to furnish and update your home. To enhance your lifestyle upon purchasing your home, you need to consider what the final purchase you are comfortable with is.
As always, we are standing by to assist you with all that is mentioned 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.
Comments(0)