The Home Buying Process:
Step # 2. Getting Pre-Approved.
When we say the 2nd step of the homebuying process is to get pre-approved, this is in fact a short way to say that you need to be prepare to demonstrate to the seller of the house you want to buy, that you are capable of doing so, so that they can commit to sell the house to you, take the house of the market for a good 30 to 45 days while you do your due diligence and until you are finally able to buy it from them and they can receive the proceeds of the sale.
Having said this, there are two ways to do this. 1st, if you are in a financial position that allows you to buy the house in cash. The only way the sellers have to know this, is by getting documentation that you actually have the money available. This is normally done, by attaching copies of bank statements on your name showing the funds availability.
On the other hand, if you are planning to finance the purchase of your next house. The bank statements are replaced by a pre-approval letter. This is a document from your bank or a mortgage lender stating how much of a mortgage they are willing to give you.
When we meet for the first time at our FREE buyers’ consultation, we’ll go over basic finances of the homebuying process, we’ll discuss how much money you need and how much you can afford based on the information you give us. Basically, we’ll go over a pre-qualification form, so you have an idea of what to expect.
However, when you meet with a loan officer, they will review documents like taxes, paystubs, bank statements and credit report among others and come up with the pre-approval letter.
Now, what if you have already spoken with a mortgage company? We can work with any company. However, our philosophy is that it never hurts to get a second opinion, and, having worked with several different ones, when we meet, we will recommend a reputable local broker or lender.
So, we are ready to meet with you for a FREE buyer’s consultation anytime. We are full time agents, work by appointment, and, we can accommodate to your schedule. Just call us to set an appointment at a time of your convenience.