What every Buyer needs to know!

Before you start searching the MLS for your dream home, take a look at these tips that every buyer should know.

1) GET PRE-APPROVED!! Get yourself pre-approved by your local bank or a mortgage banker.  Find out what is your price range before "falling in love" with a home that may not fit your budget.  Remember that most pre-approval letters are good for three months.  

2) Credit Scores - Mortgage rates are based on your credit score.  It's true that interest are the lowest but the interest rates you see advertise are often interest rates based an excellent score. You can get a free credit score on the internet.

3) Savings - make sure you have enough funds to cover your downpayment, 3 months of your "soon-to-be mortgage" payment, and closing cost (estimate 3% to 4% of the purchase price).  

4) Make a "Wish List" with your top five "Must-Haves" - it's easy to lose focus during your home search.  Remember, if you find a home or condo with 85% of your wish list - it's a contender!  

5) Choose a realtor that you are comfortable with.  You will be spending a lot of time together - during the homes tours to the close of escrow.  

6) Have fun! This is an important life changing event!  

For more tips and the top 10 frequently asked questions, go to BetancourtRealEstateGroup.com/buyers

This Month in Real Estate | August 2012

Want to know just how important the power of being pre-approved is? Find out in this edition of This Month in Real Estate!

Advantages of Being Pre-Approved

As the housing market is warming up in many areas, and multiple offers becoming more common, buyers who want an advantage in the bidding process will need more than just getting themselves pre-qualified, rather you will need to be pre-approved from a lender. 


What is the difference?


Being pre-qualified is based on what you disclose to the loan officer or broker about your earnings, credit score and total assets, including what is available for a down payment.  Being pre-qualified gives you a basic guidance on range of prices you may be able to afford.


Being pre-approved requires borrowers to provide documentation of their income and their assets and employment.  The lender will pull your credit report and score while the borrower will provide the mortgage underwriter items such as W-2 wage statements, 1099s, recent pay stubs, current bank statements, and etc.


Remember that lenders treat pre approvals as an opinion of your ability to borrow and it not a guarantee to lend.  Once a borrower has chosen a property, have an offer accepted by the seller, and then have the property appraised before you can expect a firm commitment from a lender.


When should I get pre approved?


Buyers should aim to obtain a pre approval letter from a lender within 30 to 60 days of the expected purchase date.  Pre approval letter normally expire in 90 days or so.  Within in those days, your income and bank statements will need to be updated between pre approval to the close of escrow.  




For more information about getting pre approved, visit your bank or talk to a mortgage broker.