Most first time home buyers want to look at homes... they often shop for a mortgage loan only after they've fallen in love with a particular house.
Potential Problems:
Your dream house gets sold to another buyer while you wait for mortgage loan approval.
Sellers refuse to consider your offer because without a pre-approved mortgage loan you can't prove you have the financial resources to purchase a home.
You pay through the nose for mortgage loans you could have gotten for thousands of dollars less if you had taken the time to shop.
Audrie's Advice:
Get pre-approved for a mortgage loan at the start of your search for a home.
No time for mortgage applications? Pre-qualify yourself with Audrie's calculator.
Do the homework: Use the following links for a short tuturial on mortgage loans and their role in the home buying process.
Pre-Approved - A lending institution has processed your loan application and approved a specific mortgage amount.
Pre-Qualified - An unofficial estimate of the home you can afford (a "pre-qualified buyer" is one who should be able to get a mortgage big enough to purchase the home he or she wants to buy).
How ?
Get Pre-Approved by applying to mortgage lenders on the Internet. If you have $15,000 in cash for a down payment, and if you're looking for a $100,000 home, ask for pre-approval for a $85,000 mortgage loan.
Be prepared to pay $200 to $400 as an application fee.
Contract Package $14.20
Real estate forms & contracts to legally sell or buy a home. Download them in Microsoft Word format for Windows & Mac. Order now.
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Copyright Jan. 2006 by Audrie.com Corporation
Stone Mountain, Georgia Fax: 770-469-2180
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