by Ken Murphy
on Thursday, March 8th, 2018 at 11:58am.
SAVE YOURSELF SERIOUS DIAPOINTMENT AND GET PRE-APPROVED
FOLLOW THESE TOP TIPS FOR GETTING YOUR DREAM HOME
Getting the right Mortgage is very important. Getting the right mortgage pre-approval is critical.
Are you considering buying a home? Make sure you take the right steps before you look at potential homes and save yourself some major disappointment. Lots of eager home buyers rush to the market and start looking at homes before checking to see what they can and cannot afford.
That is probably the worst thing anyone can do!
Many times, I have had people call me up and ask to see a home that they found on the web and have fallen in love with. I often caution them once I meet them at the home that if they have not yet talked with their bank or a Mortgage Broker. They could be setting themselves up for big disappointment. Or they could be selling themselves short on what they can afford.
It is prudent to get a plan together and know which direction you are going. Often potential buyers start looking at homes and have no idea if they can qualify for a mortgage at that price range. And most times its not their fault. It is the lack of information available to the public on how to do specific things and insure they are looking at the right price range that suits their available lifestyle.
NOT. Getting a pre-approval and writing an offer on a home can lead to stress and disappointment for both the buyer and the seller when the bank or Lender does not approve their request.
This happens way more than you may think. A good real estate agent will work with you getting you in the right position to buy that perfect home you want and need. Below I will list some of the things that should be put in order before looking for a home. The extra few days it takes will save you weeks of heartache.
Ask your realtor who might best serve this need. Or if you have a favorite banker. Get this process done first. They will require specific documents such as the last Tax Return you filed. Two or more pay stubs, Any debt that you may currently have, annual income, and other important items. Be as honest as possible with them. It will only benefit you in the end.
Now. Here are some things that can cause you to not get mortgage approval. Even though you have been pre-approved.
A sudden change of employment
Once an application has been made for a Pre-approval or a mortgage. The applicant takes on a new job or decides to accept a better position that suits their needs. Mortgages are issued with the understanding that certain rules come into play. Such as Length of employment at the current job listed on the application. A long time in a current position shows stability. However. Changing jobs are never a sure thing. The economy or financial stability of the new employer may cause sudden layoffs or downsizing.
A change in employment maybe acceptable in some cases if the new employer is in a similar field. Like Doctor, Lawyer, Firefighter, and other mainstay professions
It’s important that a buyer who is pre-approved asks their mortgage consultant about a possible employment change beforemaking the change.
Negative Credit items
Many times, a pre-approved client forgets to mention some pending issue that may suddenly show up on a credit report. Perhaps as a result of a divorce, monies owed to a credit card or perhaps an action taken against a delinquent car loan or other issues. It may not seem important or slip the mind of the buyer while applying for a pre-approval. Then show up when the lender researches for a mortgage approval.
If possible, a buyer should be aware of their current credit score. And report that to the lender or mortgage broker they are working with. A score around or below 600 can be a red flag.
Keep paying your bills and make sure you stay on top of your credit score during the process.
New Debt or Purchases
Now that you are pre-approved and have your application submitted for your Mortgage.
DON’T go out and buy that new boat or shinny new truck or car. It doesn’t take much to change your credit score or ability to meet the debt to income ratio that is set out by lenders. Making additional purchases can be a big mistake. If you are interested in making such a purchase. Talk to your Mortgage Specialist and see what can be done. They may have many valuable suggestions that can meet your needs.
Not doing so can get you denied. And shatter your families dreams of owning a home.
Often a offer may be written for a specific purchase price. Depending on the Lender they may order a property appraisal. Not all lenders do this, but it is more and more normal in this economy.
If the appraisal does not meet the mortgage amount minus your deposit and down payment, they may refuse the mortgage. Or they may ask you to provide the difference in the form of an additional down payment.
To get the very best chances of being approved. Do your best to not put yourself in any of the above positions. And work hard at gathering additional funds, clearing up any issues with your credit, and hire a good Real estate agent and a top-notch mortgage broker. Before you wander into the market. A few weeks due diligence will separate you from the average purchaser and make sure your dream home stays yours.
If you find this article useful. Please share it with friends and Family that may be considering a purchase or sale. And remember. I am always available for your referrals. (No matter where you live) I will find you the right agent for the job.
Also call the SARGE for all your real estate needs!