PRE-APPROVAL

Are you REALLY ready to buy?

So, you think you are ready to buy a home. You have some money saved for a down payment. You know the neighborhood you want to live in. You know Realty 1 Advantage can help you with your search. You even cleaned out the basement and garage ready for the big move. All set to begin the search, right? Almost.

Before beginning the task of searching for a home buyers should know the price range they can afford and where they are actually going to get the funds to buy. This means getting “pre-approved” by a lender. In today’s real estate market few sellers are willing to wait for buyers to get qualified. It’s a seller’s market right now and there are just too many other buyers with money in hand ready to make an offer.

So, how does a buyer get pre-approved?

First, get your financial documents ready. When you meet with a lender they will expect you to have certain information available. These include financial statements, a list of assets and debts, tax returns, copies of W-2 forms or a paycheck stub. If you will be relying on money from outside sources (like a gift from parents for the down payment), get a letter stating the nature of the gift or source. Although a lender will usually order a new credit report, it’s a good idea to get one yourself prior to approaching a lender. Any erroneous information can be cleaned up and save a lot of time with a lender. It also gives a good impression to the lender that you have your “house” in order.

Next, choose a lender. This can be your bank, credit union, a mortgage broker or any of thousands of other financial institutions that serve the housing market. A good lender will not only offer attractive interest rates and low fees on the loan, but also will give you honest feedback on your financial limits and help you remain within your budget. Your monthly housing costs plus other long-term debts should total no more than 36% of your monthly gross income.

Finally, have the lender issue you a written document stating that they will provide funds to you to purchase a home up to a stipulated amount. This “pre-approval” letter assures agents and sellers that you are a serious, qualified buyer and can move quickly to close a deal.

Realty 1 Advantage can assist you through the entire process of finding and buying a home. We will refer you to expert lenders. We will negotiate the Purchase and Sale Agreement and have it reviewed by our attorney. Plus, we will give 1% of the purchase price back to you at closing.

Call Realty 1 Advantage to discuss your home buying plan and let us help you put that plan into action today!

1-888-622-2424

www.realty1advantage.com