Buying A Home - Don't Let Your Pre-qualification Letter Keep You From Your Dream Home

If you've had some experience going through the home buying process

, you're familiar with the advice of Realtors to obtain a pre-qualification with a lender to know how much home you can afford. It seems like most sellers won't give you the time of day unless you can show proof you're a serious homebuyer. The reality is, how much home you can qualify for depends on you.

There are several variables that can affect how much house you can afford. Are you able to raise your monthly income? Can you eliminate unnecessary expenses? What kind of financing alternatives are you planning to use? Can you qualify for a first time buyer program? Are there special financing bonuses the builders offering? Are you planning to use family and friends is a source of funds? Does the property you're considering have income potential? Will you be renting any rooms up? The list goes on and on.

The amount of home you can qualify for hinges mostly on your answer to these questions and many others. As you search for homes, try to locate a real estate agent or loan agent experienced in negotiating and packaging complex deals. It's best you don't rely solely on standard fill-in-the blank pre-approvals or computer generated approvals. Depending on the available combination of lender and seller, there are several ways to buy a home.

Pre-qualifying with a particular bank only gives a ballpark estimate of how much home you can afford when you use their financing. It can't reveal all the alternative financing options available to you. You can determine what your possibilities are only by spending time researching and negotiating all the available options.

When you are pre-qualified with a bank, it shows how much you can borrow based on information you supplied. The pre-qualification won't guarantee the bank will actually make you a loan.

Only a pre- approval will show a banks' willingness to loan you the money. Most lenders will pre-approve you for a certain limit-even if you haven't started looking. One main advantage of having a pre-approval letter is real estate agents and sellers will take you seriously because they'll know you won't have any problems satisfying the loan contingency.

However, like pre-qualifying, there are several factors that can affect your borrowing limit such as the lender, mortgage program, interest rates, and your credit history. Be aware a particular pre-approval only provides you with a limited snapshot of your borrowing capabilities. Also your pre-approval does not guarantee you'll actually get the loan. The lender must check all of your information and verify that you and the property will fulfill other deadlines.

by: Sarah P. Shimanski

POST COMMENT

Bring That 80's Home into the 21st Century Organize, Declutter, And Tidy Up Your Drawers And Home DIY Home Wireless Security System - Dont Be Without One Financial Aid For Home Improvements How to Find Stay-at-Home Income Possibilities Purchasing Finest Furniture Made Easiest DIY Home Wireless Security System - Please Dont Be Without One Increasing The Value Of Your Home With The Right Home Improvements Jobs From Home For Students The First 5 As More And More People Lease Homes, How Does A Landlord Document The Arrangement? New Homes For Sale In Kent Pointers On How To Learn Cheapest But Recommended Products In Improving Attic Insulation For Any Sea Cheap Home Wireless Security System - Why They Are So Fabulous