When you begin to look at homes to decide what to buy, you and your realtor will need to know how much you can afford; more importantly how much a bank will give you to purchase your home. Having a no-obligation meeting with a mortgage professional and getting ‘Pre-qualified’ will determine this amount. Not only will this save you time and energy because you will only look at homes in your price range, most realtors will not want to show you any homes until the know what ball park you are in.
Friends and associates can refer a lender who they used when purchasing their homes and you are allowed talk to more than one lender. First, set up an appointment and have as much information about your finances as possible. Bring information about your income and your current debts as well as the amount of cash you will have for a down payment. You will want to be as honest as you can with your lender because with all the documentation that will follow during the actual loan process, they are going to find everything out anyway. If you have had credit card trouble or even a bankruptcy it is best to reveal it in the beginning. The last thing you want is to find that perfect home only to be turned down later because you held back the fact that you were fired from your job last week and now have no income.
The lender will also run a credit check, which will cost you around $25 to $50. The credit report will show where you have been late with payments or other derogatory items, many of which can be explained and possibly removed form the report. It is best to check your credit yourself before you go to a lender because cleaning up bogus or derogatory items can take 30 to 60 days.
The lender will then write you a letter stating that you are pre-qualified for a certain amount of money. You can take that letter to your real estate agent and know that you are looking at homes you can afford.
The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale, Arizona.