Page 33 - Harnett Life Summer 2020
P. 33

Home Buying 101- Why is it important



               to be pre-approved for a home loan?


















                                                                 By Martina Erdmeier
                                                                 Broker-in-Charge
                                                                 THE REAL ESTATE BOUTIQUE
                                                                 “Personalized Service-Outstanding Results”
















      Getting pre-approved for home loan should ALWAYS be        for a down payment. Your lender will also educate you
      the first step in the home buying process.                 on the different kind of loans available to consumers. For
                                                                 example, just because you qualify for a VA loan, it might
      Here is why:                                               not be the best option for you.
      • It tells you how much you can borrow
      • It tells the seller that you have the buying power to back  As always, it helps to shop around and explore all your
      up an offer                                                options.
      • It signals the REALTOR® that you are seriously look-
      ing for a home                                             Be ready to provide your lender with personal and finan-
      • It alerts the lender that you might be taking out a mort-  cial information such as
      gage                                                       •      Checking/Savings Accounts
                                                                 •      Retirement accounts
      Once you decide to start looking for a new home, getting   •      Other assets
      pre-approved for a home loan helps you to set realistic    •      Info on property you currently own
      expectations about what you can afford. Once you have      •      Income and employment documentation
      received pre-approval for a certain amount, you can focus   •     Info on your debt/liabilities
      your search on homes in this price range.
                                                                 Please keep in mind that in North Carolina, a pre-approv-
      Also, during the pre-approval process, you will get alert-  al letter or proof of funds will need to be part of an offer to
      ed to potential problems – you may need to pay down        purchase a home – make sure you are prepared and ready!
      current debt to improve your debt to income ratio, correct
           Page
      inaccuracies on your credit report or simply save more                             Harnett Life ~ Summer 2020


      Harnett Life ~ Summer 2020                                                                                Page 33
   28   29   30   31   32   33   34   35   36   37   38