Before you go shopping for that new home – Get pre-approved


When you want to purchase a home in Ormond Beach, your first step should be meeting with a local lender and getting pre-approved for a loan.


This step is important for 3 reasons:


  1. You will know what you can afford. Looking at homes you can’t purchase not only wastes your time, it’s discouraging. Many home shoppers have learned, once you switch to homes you can afford, there may be fewer to choose from that are as desirable.


  1. You will know if you need to restrict your search to Ormond Beach homes that meet certain requirements. VA, FHA, and some regional loan programs which have guidelines regarding the homes that will qualify for their financing.


  1. When you have a pre-approval letter in hand, your offer is more likely to be accepted, or at least considered over offers without such a letter. Sellers don’t want to take their homes off the market in the hope that you’ll be able to qualify – they want some solid assurance.


In fact, if you’re shopping for bank-owned homes or short sales here in Ormond Beach, it’s likely than an offer without a pre-approval letter will be rejected as a matter of routine.


Don’t mistake a Mortgage Loan Pre-Qualification for a Pre-Approval.


There is a huge difference between the two. A pre-qualification is done with no verification. As a result, it doesn’t mean much.


Prequalification: You simply talk with the mortgage lender and tell him or her about your situation. You state your income and your expenses, discuss your employment history, and answer a few questions about your credit. Then they tell you if you appear to be qualified, and for how much.


Pre-Approved: When you become pre-approved it means the lender has verified your income, assets, down payment availability, and employment. He or she has also checked your credit. So unless you do something to change the picture, you will be able to get a home loan for the amount the lender quotes.


A pre-qualification doesn’t mean a thing, so take the extra step and become pre-approved.


If you need to find a good lender, get in touch me at 386-275-1950 and I’ll be happy to provide you with a list of local lenders who have served my clients well.

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