Should you move forward with buying a home? Consider that rents are rising and mortgage rates are still hovering near historic lows. As a result, even with upward pressure on home prices, it may be more affordable to buy than rent. But what if you are financially tight, have limited resources and your credit score is respectable? What steps must you take to finally attain your dream of home ownership.
Why Buying A Home Makes Sense
The Ocala real estate market is booming. Homes listed for sale are in short supply, interest rates have seldom been lower and demand is high. But there are modest signs of stabilization and aggressive markets like ours never last forever. So does buying a home now make sense?
While we have no crystal ball, decades of experience in real estate teach us to see signals and those we see are encouraging. Ocala is well on the way to becoming an international equestrian destination. If this comes to pass, the local economy will grow rapidly. Of course, as it thrives, demand for real estate will accelerate. Therefore, prices will continue on an upward trajectory over the intermediate to long term. So we strongly believe that the old adage, “the best time to buy a home is yesterday and the second best is today”, clearly applies.
Getting Pre-Approved, The 1st Step In Buying A Home
Since competition for desirable homes is brisk in our seller’s market, you must put your offer in the best position to compete. Consider that when you make an offer, you are asking the seller to take a home off the market and bet on your ability to close. Therefore, it is logical assume that the stronger the proof of your ability to close, the more likely that your seller will agree to take that step. To be sure, there is no better proof than to show that you are able to pay cash. But few of us are in the position to do that. Therefore, most may opt for the next best way. We may present the seller with a mortgage pre-approval letter.
I am sure you have heard of a mortgage pre-qualification and a mortgage pre-approval. But do you know that the difference between the two is significant?
To obtain a prequalification letter, you simple have to provide information about your finances to the lender. Once you do, if the information you provide warrants, the lender will issue a pre-qualification letter. Of course, the letter will simply state that if the information you provided can be verified you will likely receive your mortgage loan. However, in the pre-approval process, the lender will verify your representations as if you are seeking final mortgage approval. The mortgage company will then be able to issue a letter stating that if your financial position does not materially change and the property you select meets lending requirements, it will be approve your final mortgage application. Clearly, a pre-approval is a much stronger commitment from the lender.
Don’t Put Your Re-approval At Risk
You have taken prudent steps to protect your credit. As a result, your credit score puts you in a great position to be approved for a mortgage, Additionally, your debt to income ratio is well within lending guidelines. Therefore, you are on your way to buying the home you desire and making your lifestyle dreams come true. But your job is not done. So don’t put your closing at risk by doing something foolish before closing. For example, don’t risk throwing your debt to income ratio out of wack by buying a new car or financing the round the world cruise you’ve always dreamed.
Below we provide three articles that make interesting reading and provide more insights into steps you can take to put yourself in the best position to buy a home. Enjoy reading:
If you’re serious about buying a home, don’t settle for less than a pre-approval letter. Learn what steps you can take to sail through the approval process. Continue reading on INVESTOPEDIA.
Don’t lie about your monthly income. Don’t try to hide your debts when you’re applying for a mortgage loan. Continue reading on MORTGAGELOAN.COM.
By getting a pre-approval, you’ve taken the first step on your journey of buying a home. But even with a pre-approval, a mortgage can be denied if there are changes to your credit history or financial situation. Working with buyers, we know how heartbreaking it can be to find out your mortgage has been denied days before closing. Here are the top reasons a mortgage loan can be denied after pre-approval. Continue reading on WWW.NEHMLOANS.COM.
“A man may travel the world over in search of what he needs, and but must return home to find it.” – George Moore
Many dream of an ideal lifestyle. But dreams require action to become your reality.
Andrew Kruglanski, Broker