Buying Homes in South Tampa: How To Get a Pre-approval
Buying Homes in South Tampa: How To Get a Pre-approval
If you are a new home buyer, this might be the first time that you are warned to get a pre-approval ASAP. If you’ve tried buying a house before but you don’t have a pre-approval now, same advice - get it ASAP! The home buying process singles out this crucial, most important first step in buying a home. You will already appreciate following this advice even if you haven’t found your dream home yet because you will be asked by sellers and your chosen realtor if you have one. You’ll be so proud to tell them that you do! A pre-approval will greatly help in narrowing down choices of homes you can buy and save you from the unpleasant surprise of choosing a home you fall in love with only to find out that you cannot get a loan to buy it. So before you spend time looking for , ask your realtor to connect you with a reliable loan officer in a trusted mortgage company.
Once you get an appointment, the lender will collect all the information needed to offer you a loan. They will also check your credit report. Remember that there may be a fee in this process. Bring important documents that will confirm your identity and assets such as driver’s license, bank statements, W-2 or tax return if you’re self-employed, payslip or retirement accounts. After the evaluation, if they are satisfied with what they learned, they will issue you a GFE or good faith estimate which is a document stating the terms of the loan, interest rate, type of loan and closing costs. Since the process of pre-approval may take some time, consider getting this at least 6 months before you plan to buy so you will have enough time to make corrections or adjustments in the required documents.
Now, being pre-approved does not mean the lender guarantees you the loan. It basically means you are approved to get a loan unless some wrong, drastic event happens. First, the home you wish to buy will be appraised to confirm that the price you will pay to buy the house is not higher than its market value so in case you default on the loan in the future, they will be protected.
Getting a pre-approval should be top priority for all home buyers. Owners of often prioritize prospective buyers who have been pre-approved so having one will definitely help in easing the process once you find the home you wish to buy.
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