Lake Lure Blog
Today we have a sunny day with Carolina Blue Skies. This weekend promises warm sunny weather to last though the week. The trees are just starting to get their blooms and buds, it has still been to chilly at night for them to come out in full bloom. How glorious it will be when we have beautiful cherry, dogwood and redbuds in all their glory! I can hardly wait!
When you find the right home you will have confidence that it will close in a short period of time. Pre-approval increases your bargaining and negotiating power. Sellers will be more likely to accept your offer if they know you have the financial means to follow through with the offer to purchase.
During this process you must determine how much money will be needed for the down payment. A traditional loan now requires 5%-20% down. FHA loans require 3.5% down. This down payment amount must be secured before the final loan approval. Lenders are now requiring borrowers to validate credit worthiness up to the hour prior to the loan closing! Your debt-to-income-ratio will be determined. This compares the amount you pay towards your debts each month relative to you total income. You must have income to be approved for a mortgage secured by the property being purchased.
You will only be considering properties that meet your maximum loan amount. This allows you and your broker to focus only on properties in your budget.
In todays Real Estate Market it is necessary to be Pre-approved instead getting a pre-qualification letter, as there is no loan guarantee with pre-qualification. Pre-qualification is based on a basic review of the buyer’s finances. This gives a general idea of what is affordable. This does not require a formal loan application. Pre-qualification is non-binding and is useless.
Pre-approval involves filling out a formal mortgage application, which you should be able to do at no cost. To get pre-approved for a mortgage your credit score at a minimum must be above 650. If you want the best rates, strive to improve your score to the 760 level or better. To be continued:
On Oct 6th, 2010, Keller Williams Realty Mountain Partners will be hosting Kit Cummings at the Mountain Lodge just off I-26 at exit 53 in East Flat Rock, NC. This is a free seminar and it will motivate and change the way you look at life. Please join us for the life changing event!! Here is Kit's website: http://kitcummings.com/mainsite/