Getting Prequalified
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Getting pre-qualified for a mortgage PRIOR to going out and viewing homes is a must! Many people have an idea of what they qualify for, or about how much house they can buy, but don't know for sure. A good loan officer can not only save you time by explaining to you what you can qualify for and exactly what the payments will be but can also save you money. Many times if/when you put in an offer on a home you would like to purchase, the seller has to consider whether the prospective buyer can get a loan to purchase their property. If the seller has any doubts due to lack of proof that the buyer is qualified, that could mean the seller rejects the offer out of fear that the buyer will not be able to obtain financing. They may fear the buyer is wasting their time and possibly costing them the opportunity to sell the home to someone else. |
To strengthen your negotiating power with sellers, it is important that you understand that the seller wants the most assurance possible that you, as a prospective buyer, can close escrow on the property. The way to do this is to select a loan officer that will listen to your needs and wants, and will take the time to go over the different advantages and disadvantages of each loan program. Then once you have decided which loan program works the best for your needs, the loan officer will figure out what the down payment, closing costs, and monthly mortgage payment will be. Once this has been completed, your lender should also provide you with what's called an Loan Status Report (commonly referred to as a LSR) and a Good Faith Estimate of all the costs associated with obtaining the new mortgage.
Once you, as a buyer, have obtained the LSR and the Good Faith Estimate you know exactly the home price you can qualify for, which saves tremendous time and strengthens your negotiating power. It also saves you time, as it stops you from looking at homes that are not in your price range. When submitting offers, you can feel assured that with an LSR there should be no issues with sellers thinking you can't obtain financing. As a buyer in today's real estate market, getting pre-qualified is a important step towards purchasing a home.
If you would like more information about the pre-qualification process or the mortgage process in general, please feel free to contact Michael Oliver. He will help answer questions and put you in touch with a lender to further assist you with your pre-qualification. Thank You.
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