Get pre-approved before shopping. What exactly does this mean? And why should I get pre-approved? Whether you are a first time home buyer or an experienced buyer, this is a critical step for everyone. The process of getting pre-approved starts with contacting a loan officer from a trusted bank of your choosing. If you are a first time home buyer and do not feel comfortable on where to go, a professional realtor may be able to give a couple suggestions.
Exactly what is getting pre-approved mean? This is a letter from a lender stating that based on the documentation you provided they are prepared to lend up to a certain amount. The amount of the pre-approval is typically the maximum loan amount offered. When a lender is considering a pre-approval they are considering four main areas, which are below:
Capacity - Your ability to make the payments now and in the future
Capital/Cash Reserves - The money, savings, and investments that could be sold quickly for cash.
Collateral - The home, or the type of home, that you are looking to purchase.
Credit - Your history and ability to pay your bills on time.
The bottom line is that getting pre-approved before you go shopping should be your first step. One of the main reasons is so that you know what price range to look at. Some people still find themselves surprised at the maximum loan amount that they get pre-approved for. There are many loan programs available, including some that allow gifts for the down payment.
We would like to invite you to visit TurnerGroupSells.com. Here at Turner Real Estate Group we specialize in the Rock Hill, Fort Mill, Indian Land and Tega Cay areas of South Carolina. We have made available tours of subdivisions in each city for your review. We are deeply knowledgeable of these areas, which is why you want to choose us for your real estate needs.
We work hard for our customers.
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