Seriously in the market for a new home. In many real estate markets dwelling, land and property prices are in a slump. Its a excellent time for dealing on the real estate market . Its seriously a buyer’s market. But that is only if you prepare ahead of time – not only for the home you ultimately long for – but also that you have mortgage financing pre arranged ahead of final or even tentative negotiations and all the challenges involved.
There is a large difference between a pre-approved mortgage and a pre-qualified mortgage. It can be said that a pre approved mortgage will provide you not only with greater bargaining and negotiating abilities but as well with simple peace of mind when it comes to whole home hunting and negotiation process and procedures.
A formal mortgage pre approval and approved stamp of acceptance or approval into the banking lending and loan process will provide a basis of both telling you what you or your family can afford when it comes to scouting out the real estate market and as well inform , even broadcast to both home property sellers and their realtors that you are qualified and worth their time , effort and attention and that you and your agent are both in step qualified to both entertain the thought of buy and for them to deal and negotiate in excellent faith through the sales , buying and deal closure process.
In most cases , and from most financial institutions – be they actual banks , state banks , credit unions or the now more common mortgage broker – either in person , by phone and fax , or in 2009 / 2010 online, a formal mortgage of preapproval will consist of a credit check on the applicant or applicants, confirmation of course of the applicant’s income or streams of income, and also confirmation of the stated and assured “down payment ” or “deposit”. Lastly there will be confirmation that funds needed for “closing costs” are on board and readily available. If you do have concerns , that for the most part are valid and right, you can be assured that the role of your “Mortgage Ad-visor” will take the time and efforts to discuss the different mortgage financing options and terms that are currently available to you and your family at this point in the financial and real estate markets.
Lastly it cannot be overstressed not to get carried away with either your own ego or up selling on the part of the seller , their agent or even your professional Realtor. Your first responsibility is both to yourself , your mental state and the financial safety and well being of your family. Always remember that first and foremost.