Home Buying in 68516>Question Details

Raqwalker, Other/Just Looking in Lincoln, NE

If we won't buy a home for two years, is it bad to get pre-approved now? So we can get an idea of what we need to improve? Possible next home

Asked by Raqwalker, Lincoln, NE Thu Oct 6, 2011

owners. We own now but will expect a transfer in a couple years.

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8
Thank you all for the information! Sometimes, you don't know what you don't know.-RaqWalker
0 votes Thank Flag Link Wed Oct 12, 2011
Raq,

With your eventual purchase date so far off......what would be the benefit of getting preapproved other than finding out what your loan limits are.

We would however, strongly recommend continuing to stay in touch with your designated search location by attending open houses and following prices as they continue to adjust so that when the time is "right" for you, you will be an informed buyer.

Good luck,

Bill
0 votes Thank Flag Link Fri Oct 7, 2011
Raqwalker,
Any "pre-approval" now wouldn't mean a thing after 6 months, and in many cases 90 days. If you are asking for a lender review and guidance so you can get approved in two years, yes by all means do this.
Your credit report should have no or few late payments, your balances on open accounts should be 1/3 or below their limits and your income and assets should be secure.
You can order a copy of your credit report from each of the agencies, Experian, Equifax & TransUnion. You are entitled to a free report every year. If you have inaccurate information reporting, you should dispute it in writing to the agency(s) reporting it. They are required to affirm or remove any issue you dispute within 30 days.
0 votes Thank Flag Link Thu Oct 6, 2011
I don't see what is wrong with getting preapproved now, starting to look, and getting ready. I don't see a downside here.
0 votes Thank Flag Link Thu Oct 6, 2011
A reputable lender can give you a blueprint to work on during the interim so you can increase your credit score. This is not the same as pre-approval, but it puts you on the path to readiness and ensures that you get the best possible interest rate when the time comes. You might also look into a fee-based financial adviser who can teach you new ways to save, dump debt and maximize income so that you'll not only have a downpayment, but also a healthy financial foundation that will ensure that once you have that mortgage, you can pay it, even when economic times are tough. You might take a look at Dave Ramsey's Complete Money Makeover for a great way to get started on budgeting and setting up an emergency fund.
0 votes Thank Flag Link Thu Oct 6, 2011
It's a great idea to get pre-approved now. Knowing where you stand currently is very helpful. As is asking your lender to help with ways to better your financial situation for when the time comes to buy. It's a smart step to take.
0 votes Thank Flag Link Thu Oct 6, 2011
No reason at all to get pre-approved now.

Do you know what your credit score, income and bank balances will be in two years? We all wish we did!

Also, you won't know what house price you want then either.

Hang out, keep your credit good, save money and hang on!

Good luck,

Fred
Web Reference: http://fredglick.com
0 votes Thank Flag Link Thu Oct 6, 2011
I think it's a great idea totalk with a lender now to see where you set & to find out how to improve your current situation. Kudos to you for looking ahead!
0 votes Thank Flag Link Thu Oct 6, 2011
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