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Financing
The Importance of Getting Prequalified and Preapproved for a Mortgage
Prequalifiying for a mortgage helps you determine how much home you can afford and find out what loan programs work best for you. It also strengthens your position with sellers and speeds up the home buying process once you've made an offer on a home.
Prequalification is an informal estimate of what you may qualify for. Your preapproval represents a lender's commitment to lend you up to a specified amount, assuming that the house meets the lender's financing criteria and that there have been no substantial financial changes between the preapproval and the actual loan.
Getting Prequalified and Preapproved
The prequalification and preapproval step is relatively simple, but important. It begins with the process of formally applying for a mortgage. The lender you choose will ask you questions about your financial situation. You'll need to provide many supporting documents to verify the accuracy of your statements. The lender will look at your credit record, your verified income, the stability of your income, your debt-to-income ratio and many other factors. Once you are preapproved, you'll often receive a "preapproval letter", stating the maximum amount of mortgage you are qualified to receive.
By knowing how much home you can afford, you and your real estate agent can spend more time looking at homes that fit your budget and needs.
Remember Your Budget
It is important to remember that the amount of mortgage you qualify for is the maximum. It is the amount the lender feels you can afford, but not necessarily the amount you will want to pay. It is sometimes advantageous to be conservative with this amount when shopping for a home. A common mistake buyers make is simply rushing out and buying the maximum home with out factoring in other expenses. Don't forget about the increased cost of utilities, maintenance, and unexpected expenses.
If you have questions about finding a lender or the mortgage application process, contact The Shaffer Team at (614) 402-0338. We're here to help you through the entire home buying and selling process.
Shopping for a mortgage?
Contact the following lenders for rates and information on the process of getting a loan for your home.
Joseph Sauk
Wells Fargo Home Mortgage
Phone: (614) 888-2670
E-mail: Joseph.A.Sauk@wellsfargo.com
Website: http://www.wfhm.com/wfhm/joseph-sauk/index.page
Need a Home Inspector? Finding a qualified home inspector can help protect you in the home buying process. It's a home inspector's job to thoroughly inspect the property and point out problems to the buyer. The Shaffer Team depends on the services of the following home inspector.
Rick A. Harrington, CMI
Ohio Association of Home Inspectors, LLC
Phone: (614) 565-4962
E-mail: rick@oahi.net
Website: http://www.oahi.net/about.php
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