PURCHASING A HOME OR OTHER PROPERTY Loan Pre-qualification. A fairly casual process, this is where a lender tells you how much money you can "probably" borrow based on your current income, debt and any available cash that can be used for a down payment.
Loan Pre-approval. In contrast to loan pre-qualification, this is a more detailed process where the lender actually processes your application for a loan and agrees in writing to make the loan. Typically you will be required to submit tax returns as well as pay stubs and other information. In a fast paced real estate market, the buyers who are only pre-qualified can be setting themselves up for disappointment. Home sellers and their agents pay more serious attention to offers being made by buyers who already have a loan lined up.
What are you looking for? A home or commercial property, yes, but you need to sit down and determine exactly what you want, need, are willing to settle for, and what you can't live without in a home or property. This, of course, is all dependant on the amount of mortgage you can assume.
Is this a starter home or commercial property? Many people purchase their first home or property with the intention of using it as a stepping stone to a bigger and better property. What are your intentions?
Where do you want to live? Most everyone has a preference for the city, suburbs or country. You need to decide how important this is to you.
Are children involved? If you have, or are about to have children, there are many factors you will want to review when purchasing your home. School district; research information about the local schools and the quality of education and environment your children will be subject to. Parks, public pools or recreation centers; are they close by? Shopping centers play an important role for both parent and child. We all need groceries and the kids will want to see their favorite movies. Are they located close, but not too close, to the property you want to purchase. Setton Realty will provide all this information to you.
Can I change my mind? When you give the above details to one of our friendly agents, they will search for properties that meet most, if not all, of the requirements you have thought about. Try to be flexible. You may not find your dream home, and it's o.k. to change your mind about what you want. As you begin to have showings through different homes, you may decide that a garage is more important than an in ground pool, or proximity to a shopping mall is more important than a perfectly landscaped lot. Most importantly, let your agent know when you have changed you mind, so they can concentrate on finding properties that meet your needs.
What to do first. Decide on the type of property you want to start looking for. Sit down with one of our agents. If you do not have a financial lender in mind, they can provide you with a list of reliable lenders to choose from. ( By law, we cannot give preference to one lender over another, we simply suggest lenders in your area that have a reliable record of fast, friendly service and competitive rates. You are free to choose one from our list, or select your own from elsewhere.) It is a good idea, before applying for a mortgage, to obtain copies of your credit report and FICO credit score. Your FICO scores are a measure of your financial responsibility, based on your credit history. Most lenders will look at your FICO scores when evaluating your credit or loan applications. You can order your FICO score on the Web for a minimal fee. Click on the following link for more information. http://www.myfico.com/ |
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