Pre-Qualify to Purchase Home [mortgageinsurancequotes.blogspot.com]
Pre-qualifying for a home loan can be helpful when buying a house. See how in thisfree video on real estate and bank loans. Expert: Jim DiVietri Bio: Jim DiVietri Worked as a mortgage loan officer for over 5 years in Lansing, MI. Filmmaker: Robert Rogers
mortgageinsurancequotes.blogspot.com How to Pick a Mortgage : How to Pre-Qualify for a Home Mortgage
For some people, their dream home is always unaffordable. This is primarily because they do not take stringent steps to pre-qualify before rushing out to search for a home. A pre-qualification is, basically, an estimate of how much you can actually afford. Once, you know that you can effortlessly track down a house that fits in your budget. Furthermore, as a pre-qualification denotes that your creditworthiness has been proven by a financial institution, it becomes relatively easy for you to negotiate with the seller more aggressively. The seller, on the other hand, gets the assurance that you are a genuine buyer, and takes you seriously. Here are a few things that you need to do to pre-qualify to purchase a home.
• Enlist your monthly expenses- The first thing that you need to do is to note down all your monthly expenses. The list should include the regular telephone, electricity, gas and grocery bills.
School fees, transportation costs, house rent, maintenance charges, and so forth should also be included in the list. Yearly expenses pertaining to property taxes, homeowners and auto insurance, and license plates should be added to the list, but only after dividing them by 12.• Find out your monthly sources of income- Your salary is the primary source of income. Additionally, all the money coming from part-time jobs should be included. Any monthly interest you are earning from your investments should also be added.
• Try to ascertain how much you can actually afford to pay- Add your expenses as well as your income. Subtract the total expenses from the total income. You will get to know how much you can actually afford to pay.
With the help of a mortgage calculator, you can easily calculate the exact amount of home loan that you can manage to payback. These mortgage calculators are easily available online. You can also buy an amortization book to learn how to calculate your monthly mortgage payments depending upon the interest rates and the number of years chosen to payoff.• Contact the mortgage lender- After all the preparations, you should contact the mortgage lender, and tell him exactly what you need. Allow him to check your creditworthiness, and thereafter let him give you a quotation. As there are several options available; hence shop around a bit. This will help you to ascertain what other lenders are wiling to offer. Go for the best quotation. Even if the mortgage lender is ready to offer you more, stick to your terms and conditions because at the end of the day you would have to payback whatever you have borrowed. So the more you borrow, the more you would have to payback together with the interest.
• Get the pre-qualification letter- As soon as you find an offer that matches with your pre-conditions, grab the offer. Ask the lender to lock the current rate the moment you pre-qualify. The mortgage lender will issue a pre-qualification letter. A copy of this letter will also be sent to the real estate agent who is helping you in your home search. Homeowners will welcome you with open arms, once they come to know that a good mortgage company is waiting to provide you home loan. This is the magic of a pre-qualification letter.
Find More Pre-Qualify to Purchase Home TopicsQuestion by JCMOM00: Does a pre-qualified mortgage letter means I have a good chance of being approved for a mortgage? I spoke with a chase representative and I received a pre-qualified letter for a mortgage. My credit score is in the uppers 690's(middle score) I have no debts and pay all my bills on times. I was wandering if the pre-qual letter means it's a good chance I will be approved for a mortgage. Best answer for Does a pre-qualified mortgage letter means I have a good chance of being approved for a mortgage?:
Answer by Elaine
no. a pre qualification means that they reviewed your basic info and you could possibly be approved for a mortgage. unfortunately in the world of financing we live in today, when you actually have all your docs reviewed by underwriters, there is much more to it than the prequalification. they take a lot more into account. its not to say you wont be approved (since i dont know the info on the property you want or your other statistics, like income or debt to income ratio etc) but basically you arent "all set". good luck though, its so stressful and im going through the process myself and its been a lonnnnng road. lenders are being extra cautious these days so its tough out there!!
Answer by Judy D
When a bank "pre Qualifies" you for a mortgage they usually give you an amount that you can get a mortgage for, that way you know how much you can borrow to pay for a house. Cal the bank and get them to clarify what the mean befo re you go house shopping. If you have $ 20,000 to put down and the bank pre qualifies you for an $ 80,000 loan you can buy a $ 100,000 house, so you would be wasting your time to look at houses that list for $ 300,000.
Answer by Katey
It means very little coming from Chase. They will send out letters and not approve people. So I would say that you have less chance than with other lenders pre-qualified letter because it's from Chase.
Answer by Landlord
When they do that they take you word for everything. After they research and verify teh answer can be different.
