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Cashing Out Of Preforeclosures - Exit Strategies For Maximum Profit
One of the quickest ways to real estate profits is through preforeclosures. What is a preforeclosure, exactly? A preforeclosure takes place from the time the bank gives notice of default to the time the house sells at auction. Typically, this is...
Help! I've been Robbed
Your home is the most important place. It is the place that you go to after a hard day’s work. It is closely associated with the feeling of warmth, and it is surely not a surprise that so many things rely on the special feeling that your home gives...
Remodeling a Bathroom
So you've decided that it's time to update your bathroom. Whether you're planning to sell your home or you've simply decided your family needs a more updated space, there are a few important decisions you should make before you start.
First of...
Sprucing Up Your Yard And Garden To Sell
If you are thinking of selling your home, the best way to raise the value of your property is to fix the place up! Whether it be new landscaping, a new front door, remodeling the kitchen or bathroom, or building a fence, every dollar that you put...
Why Good Houses Don't Sell?
When a house doesn't sell as quickly as expected, it's easy (for the owner anyway) to lay the blame on a soft real estate market, or a lousy selling season. After all, neither of those things are the seller’s faults, nor under the seller's control....
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Home Loan Pre-qualification vs. Pre-approval
Once you’ve decided to buy a property, the first step is not to go house hunting. Instead, you should find out what you can borrow. In doing so, it is important to understand the difference between loan qualification and approval.
Pre-Qualified
Getting pre-qualified for a home loan carries little if any weight when it comes to actually getting the loan issued. Let’s take a look at why.
Its time to buy your first home and you’ve done the research. The first step is to find out how much you can borrow. Down to the bank you go for a sit down with a friendly home loan officer. This person asks you questions about finances, salaries, credit and so forth. You might even be asked to fill out a short questionnaire. After a surprisingly short time, the bank officer suggests a loan amount of around $300,000 is probable. Being really helpful, the bank officer even prints out a form letter with your name and the pre-qualification amount of $300,000. Wow, that was easy…perhaps to easy?
The problem with pre-qualifications is they are based on best guesses. The bank officer looks at no hard facts. When it comes time to actually apply for the loan, you can be assured the lending institution isn’t going to be willing to guess. In fact, you might be told you don’t qualify for a $300,000 home loan when push comes to shove. You might only qualify for $250,000. In nightmare situations, you might not qualify at all because of credit problems. In short, home loan pre-qualification is a waste of time for the most part.
Pre-Approval
Getting pre-APPROVED for a home loan is definitely your best
option. Getting pre-approved for a home loan is an excellent strategy because you actually go through the process. Issues such as income, credit scores, personal wealth and so on are resolved. At the end of the process, the bank agrees to issue a loan up to a certain amount contingent on an appraisal of the home you eventually decide to buy. The lender will produce a letter indicating as much, and it is a very valuable letter.
A pre-approval letter is instant gold in the real estate market. If you were selling a home, would you prefer a buyer with a pre-approval letter or one without? The answer is obvious and leads to another advantage. In the current market, it is likely you will be bidding against other parties for property. A seller is much more likely to select your bid because they know the loan process will go smoothly. This can make all the difference when it comes to closing a deal.
Determining how much money you can borrow is the first step in the purchase process. Just make sure you get a pre-approval letter, not pre-qualification guesses.
About the Author: Dan Lewis is with http://www.gwhomeloans.com - A San Diego mortgage company providing home equity loan, refinance and mortgages to San Diego home owners. Visit http://gwhomeloans.com/services.html to learn more about options for San Diego mortgages.
Source: www.isnare.com
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