An Organized Plan is the Key to Success!


Shop for a mortgage before you shop for a home.

You may want to start the buying process by getting pre-approved for a mortgage.  Getting a loan preapproval is the smartest way to shop for a home. It lets the sellers know that you're a serious prospect, and you know in advance the maximum mortgage you can afford. Get the preapproval in writing. 

What are the differences between mortgage prequalification, preapproval and final loan approval?

Prequalification is the process where the lender will look at a basic copy of your credit report and use the information you supply to determine how much mortgage you can afford based on your income. No accounts or employment information is verified. Preapproval occurs when all credit and employment is verified and the mortgage is approved, subject to the appraisal of the property you have chosen to buy. Final loan approval occurs when the property has been appraised, all documentation is in the hands of the lender and all contingencies have been met.

The good news is that it's easier than ever to qualify for a home loan. Lenders have modified qualification rules and created programs designed to help people even if they have problems in their credit or employment histories. Many programs call for dramatically reduced down payments the biggest obstacle for first-time home buyers in particular.


DESIRE VERSUS NEEDS

Do you know what you want in a home? How will you match what you are looking for in a home with the features that the homes on the market have?
Understanding what you really need as opposed to what you'd like to have will help you keep your priorities straight as you shop around. I've seen people fall in love with a home for the wrong reasons, then regret their purchase when the home fails to meet their needs.
Don't let emotion cloud your judgment. Satisfy your needs first. If you find a home that meets your needs and fulfills some of your desires, so much the better. The important thing is to know the difference before you get caught up in the excitement of the hunt.
The following is a list of some of the items you may consider: