|
Buying Trumbull County Ohio Real Estate: Pre-Qualification or Pre-Approval?
Buyers of Trumbull County Ohio real estate need to determine how much of a mortgage payment they can afford. The buyer may wonder if they should get pre-qualified or pre-approved for a mortgage loan. If you want loan reliability, the pre-approval letter is more reliable than just getting pre-qualified.
Following are some facts to consider:
-
The pre-approval process goes a step further than pre-qualification. It means that the lender has checked out your credit, reviewed your tax returns, verified your employment, earnings, and assets. The lender will usually write you a letter indicating that the bank or mortgage company is willing to grant you a specified amount within a certain number of days. Besides stating the maximum loan amount you´ve been pre-approved for, the letter will explain any stipulations regarding the loan.
- Sellers love having pre-approved buyers. They know they will have no waiting time for loan approval...the buyer is ready to buy and you'll have a faster closing period.
- When you obtain a pre-approval letter, you are guaranteed a loan with that particular mortgage company or bank.
- If you want to see another lender who offers better terms, you will have to go through the whole pre-approval process all over again with that company.
| Loan Qualification Tips
When you qualify for a loan, to ensure you have no credit problems the lender will check your credit history. If you´ve never missed any payments or been late with payments, your credit is probably sterling and you do not have to worry about getting a bad report. However, sometimes a mistake occurs and your report may indicate a problem when you know that problem has been resolved. So follow these important tips:
- You´re entitled to a FREE credit report annually. Get yours from a local credit report agency or a national credit bureau. Three of the best-known credit bureaus are Equifax, Experian, and Trans Union.
- Know your FICO score. Your FICO score is a number between 300 and about 800 or more. This credit score is influenced by: past delinquencies, use of credit, credit file length, number of times you ask for credit, and a mix of credit. Anything above 660 is a good score.
- FICO score lower than 600? You may be required to write a letter of explanation to convince a lender to give you a loan. He may give you the loan, but he may charge you a higher interest rate. You are considered risky if you have late or slow payments on: housing debt, installment credit or revolving credit.
- Credit report with no problems? Then you'll probably get a loan.
- Credit report with problems? if you pay your bills late, you will be considered almost as bad as someone who does not pay them at all. You'll usually be asked to verify in writing why a payment was late.
- No credit in your name? You'll need to establish credit in your name with a department store card or gas card. Or open a bank account with your name on it and then get a credit card against the deposit amount. As you can see, there are ways to rebuild your credit.
- Numerous credit cards? Close them out before you apply for a loan. This may be looked upon negatively by a lender.
| Thinking about buying a new home?
For a positive real estate experience, call the Trumbull County Ohio real estate experts, REALTORS® Bernie and Dom Marino. You'll get The Power of Two working for you to help find the perfect home at the best price and terms.
Contact us today! Hope to hear from you soon.
Phone Bernice: (330) 219-8653
Phone Dom: (330) 219-4417
Email: info@MarinoHomeTeam.com |
Read More:
Pre-Qualification or Pre-Approval
04/27/2009
Home Improvement Tips
03/26/2009
Choosing a Real Estate Agent
02/26/2009
Avoid These Typical Home-Buying Mistakes
01/26/2009
Danger of Over-Improving Your Home
12/24/2008
Preventing a Leaky Basement
11/25/2008
School Levies and Real Estate
10/27/2008
Get a Home Inspection
09/27/2008
To Buy or Not to Buy
08/27/2008
Making An Offer 07/23/2008
Staging Your Home Part II
06/26/2008
Staging Your Home - Part I
05/27/2008
Setting the Right Price
04/28/2008
Blog Archive Log
|
