So what does "pro-active measures" and "preparation" actually mean?
- Checked their credit (Don't assume you know. Go to: www.annualcreditreport.com/index.action)
- Talked to a Mortgage Lender (also to obtain free credit report)
- Have been Pre-Qualified by the Mortgage Lender
- Addressed any debt or credit issues that may have existed (Even small improvements can translate into real savings of dollars, both during the initial financing and closing on your home and over the life of the loan as well).
- Gathered the financial documentation needed for Mortgage Pre-Approval
- Been Pre-Approved for their Mortgage
- Have funds together for a Down Payment
- Have funds together for Closing Costs or have discussed an option for seller-paid closing costs with your Lender
- Understand their maximum Price Range
- Understand their maximum Monthly Mortgage Payment (Read: "How Buying in a Homeowners Association (HOA) Can Affect Mortgage Approval & Monthly Payments).
- Formalized their Pre-Approval
In other words, the above-mentioned steps must have been performed and completed prior to the start of viewing homes and placing bids on them.
Buyers need to act proactively. They need to be up and running regarding their mortgage financing.
When they have done this, they then can quickly produce a PRE-APPROVAL LETTER proving to a Seller their capability to buy successfully. (Read about the advantages and benefit of Pre-Approval VS Pre-Qualification).
Education ... preparation ... action. Each is crucial when buying in a low-inventory/multiple bidder Chicago-area housing market.
Give yourself every advantage possible. Contact me or your own local mortgage lender now ...
* Are you dreaming of buying or refinancing a home or Investment Property in New Lenox - Will County - Chicago - Chicagoland - IL/WI?
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