Why You Need a Pre-Approval
Finding the right home loan is equally important as finding the right home. You'll be living with both for a long time. The first step for any buyer in this competitive marketplace is to get pre-approved. Many real estate agents will only work with serious buyers and will want you to have a pre-approval in hand before they start showing properties to you.
Being Pre-Qualified vs. Pre-Approved
With a pre-qualification, you are given an estimate of what you can afford. It is not a guarantee.
When you are pre-approved, you get a commitment from the lender to provide a mortgage for up to a specific amount, barring any major financial changes or problems with the house. Your pre-approval is usually valid for 60 days.
When getting pre-approved, the lender will take into consideration all income sources that are expected to continue on a steady basis and can be verified.
Once sources of income have been determined, the next step in the process is to determine the appropriate debt to income ratios (percentage of your monthly gross income (before taxes) that is used to pay your monthly debts, including the new mortgage, property taxes and insurance.)
Total monthly expenses/Monthly gross income = Debt to income ratio.
What is on Your Credit Report?
(Ex: $4,000/$9,000 = 44%)
As you move forward with the pre-approval process, you'll want to review your credit report to ensure all information is accurate. As a consumer you are able to obtain copies of all 3 credit bureaus annually without any charge from www.annualcreditreport.com.
Are You Ready?
The numbers are all positive in Southern California. Since the beginning of the year, there has been an increase in homes sold, sale price, and number of listings. And the number of days that homes are remaining on the market has decreased. Act now to refinance or purchase and take advantage of the still low rates.
Connect With Us
NuVision Federal Credit Union
7812 Edinger Avenue
Huntington Beach, CA 92647
Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government.