What is Pre-Qualified?
Where should a buyer start?
In Southern California, if you want to have a chance you HAVE to be Pre-Qualified. Why Get Pre-Qualified?
Currently the real estate market is too much of a Sellers market to not be 100% prepared. Because of the shortage of good homes on the market, buyers need to be as competitive as possible. Sellers want to know that a Buyer can get the loan they say they can.
- During Pre-Qualification, the mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes or a few hours at most, and is free.
- You aren’t “stuck” with the lender who does your “pre-qual” letter, but it serves as a good indication to potential sellers of your general creditworthiness. It only costs you the price of pulling your credit – between $50-$100. That saying that checking your credit will hurt your credit score is mostly a myth put out there to prevent buyers from shopping around on loans. A second or third opinion is more beneficial than a point or two that might come off your credit score.
- In Glendale or Burbank or the surrounding area, most sellers will NOT accept an offer without at least a pre-approval letter, so if you are serious about buying this is the first step towards getting you in your new home.
- Difference between “Pre-Qualified” and “Pre-Approved”:
- Pre-qualification means that a lender has evaluated your creditworthiness and has decided that you probably will be eligible for a loan up to a certain amount.
- Pre-approval should mean your loan is only contingent on the appraisal of the home you choose, providing that nothing changes in your financial picture before closing. If you are pre-approved, you could close on a home in much less than 30 days if you wanted.
Mary Anne can help you find a loan officer who’s an expert in mortgage loan financing. One that brings a wealth of knowledge and expertise about home loan financing. Mortgage guidelines are constantly changing, so you need someone you can trust for up-to-date information.
Explore Your Options
Whether you are purchasing your first home, expanding your financial portfolio with investment property, or recovering from a previous short sale or foreclosure in the past, getting the best loan for your situation is key. Mary Anne can recommend a lender or two at the beginning of the process.
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