Gloucester County Realtor | Home Buyer Pre Approvals

The Age Old Problem; Home Buyers Searching for Homes When They are Not Pre Approved

When Realtors meet buyers they often find that these buyers have already been searching for a home for weeks or even months. On many occasions, these buyers have yet to be pre-approved for their mortgage. It seems that buyers often think is done after they find a home.

There are no two ways about it; Mortgage pre-approval is the first step any buyer should take. A mortgage pre-approval will not only let a buyer know if they qualify, but will also show them how much they qualify for, their total monthly payments, and most importantly, how their loan must be structured (extremely important in today's market).

Once a buyer begins looking at houses in a certain price range they become accustomed to the size, layout and upgrades that this price range offers. If they later speak to a mortgage professional and find out they qualify for a lower price range, the home buying process can become very bleak and unexciting. Every house they look at will be compared to the homes in the higher price range. Nothing will measure up to their expectations of their new home.

Let's do it right from the get-go!

Consider these simple guidelines.

1. Speak with a mortgage professional. You should discuss purchase price, mortgage programs, and how the loan should be structured. It is equally important that your mortgage professional discusses this detailed information with your Realtor. It can be the difference between success and failure.

2. Contact your real estate professional. Before you begin looking at homes be sure your convey to your agent what are the most important qualities you are looking for in a home. Make sure your Realtor and mortgage professional keep the lines of communication open. Many loan programs have specific requirements that your agent must be aware of.

3. Find the home of your dreams and make an offer. Proper offer negotiations are crucial. Your real estate agent and mortgage professional should work together to draft the offer that reflects your approval and will be in your best interest.

4. Home Inspection. Although this is not mandatory, it is highly recommended when buying a home. Would you buy a used car without having someone you trust "look it over?" Why purchase a house in that manner? Be very careful about the timelines in your contract, as they dictate a specific time frame in which the home inspection and repair requests must be complete.

5. Mortgage documents. It is very important to provide all documentation to the mortgage company in a timely manner. Any delays on your part can cause a delay in your final approval and settlement. In worse case scenario you could lose the house.

6. Pre-Settlement inspection. You should inspect the property the day of settlement to ensure the property is in satisfactory condition, that repairs have been made to your satisfaction, and that the seller has removed all of their belongings. This is one situation where a strong negotiating Realtor can be worth their weight in gold.

7. Settlement. You should arrive at the settlement location on time. You should bring photo ID, certified check/cashiers check in the amount needed for settlement, a copy of your homeowners insurance policy, and your check book.

For additional questions or help contact Andrea Kappre.