â€¢Prequalification: Prequalification is a preliminary estimate of how much you can afford to pay for a home based on information you provide. Because credit and employment information arenâ€™t validated for prequalification, it can only be considered a rough idea of a monthly mortgage payment and loan size. This can be a useful guide as you begin the home buying process, however.
â€¢Pre-approval: Pre-approval is a written commitment from a lender to finance your home purchase up to a set amount. This indicates that the lender has taken a close look into your financial history and has agreed to lend you a specific amount of money, reliant on certain details like a finalized sales contract and professional inspection. Pre-approval indicates to sellers that you are a serious homebuyer.Regardless of which option you utilize, or even if you take both steps, youâ€™ll be able to shop with much more confidence. Why wait until you find the perfect home to discover problems with obtaining a mortgage?
Tammy Hayes, Realtor
Re/Max Palm Realty
I'm sure you can understand the value in using a local lender in the same town where you live. In fact, I've seen sellers agent's before reject offers outright for people who are not using a local lender who is familiar with the market you're buying in. I'm familiar with some of the regulations in Texas, as that's where our Home Office is, but things are different in many ways up here in New England. The truth is, that when you're submitting an offer, its very important that your pre-approval letter be specific to the property you're buying, either by way of showing the property address, or your offer price. You wouldn't want a seller to know that you're pre-approved for $400K if you're only offering them $200K, would you? Our customer service survey results are 4.9 out of 5 on average, and we have never had a problem with any pre-approval letters. I encourage you to read our testimonials before considering an out of state lender.
I agree with what the agents below said as well. I speak with many buyers who "think" they know what their price range is, only to find that they are qualified for much more, or occasionally much less. The reality is that in this day and age, despite all the hype about how hard it is to get a mortgage, most of my clients end up pre-qualified for much more than they would feel comfortable paying for a mortgage on a monthly basis. I'd be happy to chat with you and go through a pre-qualification if you have some time this week. My office is right downtown Dover, but we can very easily complete a prequalification for you right over the phone in about 10 minutes. I look forward to hearing from you!
Get your Pre approval 1st then go looking. I'd be happy to help you find something within your price range.
The Gove Group