Looking to purchase a home in (Dallas surrounding area) What are my first steps? How do i get pre approved for home loan?

Asked by Bjdjaj, Dallas County, TX Sun Jan 1, 2012

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12
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Sun Jan 1, 2012
Step 1: Talk to a couple of lenders and find one you are comfortable with.
The right lender will explain to you the basics or pre-approval and what loans you qualify for.

Do NOT pay any up front fees for pre-approval. Plenty of lenders do NOT charge this so you don't need to.

Once pre-approved, you can start looking for a realtor. Your lender should know the good ones(and bad ones) from past experiences.

Good luck!!

Tom


Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
1 vote
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Mon Jan 28, 2013
Good morning Bjdaj,

First steps:

1. Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

2. Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order. Again, when you make an offer and you have your Home Inspector ready to go, your offer will be considered with much more interest by a Seller because you truly have your "ducks in a row" and your preparation demonstrates your serious attitude about conducting the purchase transaction in a timely manner.

3 Find an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.

Put together your Team of real estate professionals and shop 'til you drop!

Good luck!
Trevor Curran
NMLS #40140

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0 votes
Simon Campbe…, Agent, Miami Beach, FL
Sun Jan 27, 2013
Pre-Approval is a very important first step. There is a difference, however, between being pre-qualified and pre-approved.

Pre-Qualification: A mortgage loan pre-qualification is simply an estimate of how much house you can afford and how much money a lender would be willing to loan you. This is based on a conversation between you and the lender without having the lender verify your financials and credit history. The lender would then provide you with a ballpark figure in writing of how much he thinks you could afford to pay for a monthly mortgage.

There is no cost involved and there is no commitment on either side. This estimate is just helpful in helping you figure out if buying a home is a viable option, and if so, what your price range would probably be.

Pre-approval: Getting pre-approved means that you have a tentative commitment from a specific lender for mortgage funding. In this case, you provide a home loan lender with actual documentation of your income, assets and debts. The bank will run a credit check and work to verify all your employment and financial information.

Once you are approved, the lender will give you a letter of commitment, stating how much money her bank is willing to loan you for a home purchase.

It is important to understand, however, that even a pre-approval is not a guarantee that you will be approved for a mortgage loan. The funding will only be given when the property appraisal, title search, and other verifications check out on the home you have chosen to buy.

Neither is the pre-approval binding; you can still obtain a mortgage from a different lender. If you do stick with the same company that pre-approved you though, the application process will be much shorter once you find the right house.

Find out what is going on in the Dallas Real Estate Market: http://www.bankforeclosuressale.com/wp/article-01074151.html
0 votes
T.E. & Naima…, Agent, Dallas, TX
Sun Jan 27, 2013
Yes, among the first things to do is get pre-qualified for a loan, but it is not the first thing to do.

You first have to think through whether you're ready to buy a house, because it is a commitment. Many people 6 or 7 years ago thought they would buy a house and then just sell it at a profit in a few years. That didn't happen. They either took a loss or are still in it. It is a commitment when you buy. You may be there a lot longer than you thought.

You should be comfortable with your payment. Look at your budget (most young people don't have a budget - they just spend 'til they run out). You know you can use your current rent for a mortgage payment and if you buy a house, under current Federal law you can deduct your mortgage interest and real estate taxes. Deductions result in a refund of your tax rate times the deduction (give or take) - ask your tax advisor.

So, with your current rent plus a reduced tax burden will that cover your monthly payment or will you need to spend more money each month? Do you have a car that is going to need to be replaced? Do you have student loans that will come due? All these things are important and known only to you at the moment.

Figure out how much money you can come up with reliably each month.
NOTE: lender will often limit the amount you can spend each month on your mortgage payment to about 41% of your monthly gross income. But that 41% includes all your debts, like student loans, credit card payments and so on.

Now, think about what kind of housing you want. Is a single-family with a white picket fence in the suburbs your style, or maybe a 3-story townhouse near the arts district, or maybe a condo by the lake? How big should it be? How many bedrooms, bathrooms, garage places, and so on. Will it need to be larger in a couple of years to accommodate kids or more junk, or maybe it should shrink. Shrinking is easy; expanding space is not.

Where do you want to live? How long of a commute to work and other relatives and church and shopping et cetera? A Realtor can use your help in finding the house you're looking for if you have already thought these things through. You can be flexible, just not clueless.

Now, go to a lender and ask to be pre-qualified. A conditional qualification means you have not surrendered every single bit of information about your life, but it appears you can get a loan, or not, of a certain size.

A pre-approval requires your file be submitted to underwriting for evaluation. That's right. A conditional approval means you did surrender your W-2s, tax returns, have your employment verified, pulled your credit report from all 3 bureaus, and so on. Don't let people tell you you're approved when they mean "pre-qualified" - they are different.

Those loan officers should be shot if they send you a letter using the word "approved" if they haven't received your tax returns and all the other stuff from you. A guy cannot pre-approve you in an hour. It takes a few days - maybe the next day if it's not the last 2 weeks of the month.

Is it possible that someone would spend money to pull your credit, analyze your file with all your W-2s and 1040s and so on, submit all that into DU or LP and have underwriting look at it, all for free? Get real. Okay, some will, because they want you to come back, but don't count on it being free, unless it's just a pre-qualification.

Just a caveat about adjustable rates: don't. A loan that can change by 1% every year may sound reasonable to some regulator in Washington, but when your mortgage payment jumps by 13% on the principal plus interest, you'll realize what adjustable rate actually means. Starting at 4% the cost per thousand of loan is $4.77 while a 1% rise would put it at $5.37 - 12.6% more. And it can do that every year?!?

At this point, if your eyes haven't glazed over, you're ready to research the geographic areas you think you want to live in. A Realtor can definitely help you here. You'll already know how much you can spend. Also, you'll know if there are things on your credit report that you need time to fix. Work with your Realtor. Don't drive around and call each Realtor on the signs you find - you can, but remember they by law work for the seller, not you. They can't lie to you, but who is going to help you and advise you, if they are working for the seller?
0 votes
Joseph Pytch…, , Plano, TX
Mon Oct 22, 2012
Hi there!

My office is located in Plano and I would love to speak with you! I have recommendations from some local realtors whom I work with. I will do a pre-qualification with you at no charge. My office is located here in Plano and I work with people all over D/FW.

Please give me a call anytime, 7 days a week.

Joseph Pytcher
817-637-7001
joseph.pytcher@cobaltmortgage.com
0 votes
Doc & Ellen…, Agent, San Antonio, TX
Sun Jan 1, 2012
Your first step is ALWAYS to get yourself a competent Buyers Agent See my blog at http://www.trulia.com/blog/ellen_doc_stephens_realtors/2010/…

Making such a major purchase without professional help is just foolish.

Doc Stephens, REALTOR
0 votes
Bruce Lynn, Agent, Coppell, TX
Sun Jan 1, 2012
1st....let's get you with a lender to get preapproved.
Drop me an email and we'll get you connected with a couple of what I consider the best in town.
I am very very very picky with lenders and have found two that consistently perform for my customers.

Then let's meet and see how you want to proceed. This is typically about a 1hr conversation on where you want to live, what kind of house, what kind of timeframe and lots of other questions and discussion. At that meeting I have a free book for you called "My First Home", for you. This will also answer many of your questions.

Congratulations interest rates are low and we're seeing some great pricing on homes as well.
0 votes
Amit Sachdev, Agent, Plano, TX
Sun Jan 1, 2012
Please go to my website -

http://www.sunshinerealtors.com/buyer.php

It gives you the 10 steps that you need to follow to become a home owner.

As everyone has already mentioned, get your self preapproved thru a reputed lender. All realtors have good refferences for lenders.

Main thing is to find out what you want to spend per month and what can you afford to put down towards the purchase of the house. This will eventually dictate what your price range for the house should be and what areas support those kind of prices. Then you select which areas fit your needs and requirements.

Amit
0 votes
Susan Hanson, Agent, Plano, TX
Sun Jan 1, 2012
Hello,
Thank you for your question. As you suspect, checking with a lender is a great first step so you can find out what purchase price you qualify for. All sellers expect any offer to be accompanied by a letter from the buyer's lender indicating they are a viable buyer. I would be happy to furnish you with a list of good lenders in the area with whom my clients have worked. It is then important to find a good real estate agent to assist you--the sellers pay the real estate fees so you should not be charged for this assistance. The agent will be able to create a custom search for you that has automated updates to keep you well informed of the areas you are searching. The agent can also help you negotiate an offer and keep all your paperwork in order through closing. They can furnish you with a market analysis of your favored areas to be sure you do not offer too much.
I always create a notebook for my buyers to keep track of the houses they look at, including a step-by-step guide from looking at houses through closing the sale. I also upload pertinent info such as school ratings, tax rates for the metroplex, etc. onto the custom search I create for them. Feel free to contact me with any questions. I would welcome the opportunity to assist you!
Susan Hanson
Your Home Is Where My Heart Is!
http://www.susanhansonhomes.com - cell: 972-489-0228
0 votes
AV, , Dallas, TX
Sun Jan 1, 2012
Your first step is to apply with a lender and get pre approved before you do anything . Once you are then contact an agent and start house hunting. Getting pre qualified only takes a few minutes. Contact me at my website for assistance
0 votes
BayAreaHomeR…, Agent, Vallejo, CA
Sun Jan 1, 2012
Well you can do some of the homework yourself. Most loans you need to have at least a 620-640 Fico score. If you have bad credit and know it's real bad then fix your credit first before you even think about applying for a loan. You can pull your free credit report once a year at annualcreditreport.com It won't give you a score unless you pay a full bucks, but you probably don't need it right now. Check if you have any late payments, and check your balances versus your credit line. If you max out on a lot of your cards, this will hurt your score.

After if everything is clear, then ask some friends and families who they used in the past for their loan. I would use a local broker, someone you can actually meet with face to face instead of those big online loan companies. They will ask you a few questions about your income, your debt, how much down payment you have, etc. Then they will run your credit to see if you can buy a home. If you pass the first step they will ask for all the paperwork like your w2s, pay stubs, bank statements, etc. They will issue you a pre-approval letter then you can start looking for an agent to find you a home.

Let me know if you need any help on the process and I can point you to the right direction.

You can contact me by clicking on my profile. Have a Happy New Years.
Web Reference:  http://www.mygpsagent.com
0 votes
Kenneth "Ken…, Agent, Dallas, TX
Sun Jan 1, 2012
Get in contact with a Realtor of your choice and then contact a lender to get qualified. Getting qualified is easy and free. Once approved head out with your Realtor and find a home to your liking. There are a few more steps involved but this is pretty much it.

GOOD LUCK.

Kenny
0 votes
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