A home is the dream of every American and all of us want to see ourselves being able to go in for it one day. When that day comes, the last thing we want is any reason for delay or insecurity to cloud the decision. This is especially true if one is a first-time home buyer. Obviously, the most challenging and confusing part of the home buying process is the financials.
Confusion here can relate to which the best lending institution is, what type of loan is best and what the conditions are, and what size of home loan one can comfortably pay off over the years of tenure. However, one of the biggest worries for a first-time home buyer with regards to a home loan is how long one needs to wait for its approval.
In this scenario, the best bet for a first-time home buyer is to apply for a pre-approved home loan. Getting a pre-approved loan means that you have already dealt with one of the trickiest parts of the purchase process, and can now focus your time and attention on finding the best property options available. Pre-approved loans also give you an upper hand when you are at the negotiation table with a developer.
Understanding the difference between loan pre-approval and pre-qualification
Pre-approval and pre-qualification of home loans are completely different things. Pre-qualification is more like an educated guess on the part of the bank or lending institution about how big a loan you qualify for. This estimate or loan eligibility is based on your current earning power, credit score, financial history, and so on. A pre-approved loan, on the other hand, is a written guarantee by the lender that you have secured a loan.
To grant a pre-approval certificate, loan officers will conduct an employment, remunerations and ‘credit worthiness’ check. This will include collecting all past financial data like loan or credit card repayment history, credit card statements, disposable income, current debts, and more.
How to get a pre-approved home loan
The first step towards obtaining a pre-approved loan is finding a lending agency you can trust. It might be one that you know, one that an acquaintance works for, or one that has been reliably referred to you. While any lenders would conduct an extensive credit check, you must find one that is not only willing to lend to you but also has a good reputation on the market.
Another important thing to check is the rate of interest that will be charged on your home loan. The best agencies will come up with competitive rates and also offer helpful customer service. In these cases, the loan officer will actively help you out to get the pre-approval, and discuss the type of settlement you would be eligible for given your salary, investments, tax returns, debts, credit score, etc.
How does a letter of pre-approval help?
An important advantage of a pre-approved loan is that you know your spending limit. You are precisely aware of what kind of property you should be searching for. This eliminates from your search properties that you are not eligible for. Secondly, with a pre-approval letter, you will not have to wait for many of the formalities of property purchase once you come across a suitable option. You have the advantage of being immediately able to book the property using the pre-approval letter. A pre-approved loan also gives you a lot of credibility with builders/promoters, and increases your negotiation power.
Getting a pre-approved loan is the easiest way to buy your dream home in the current market scenario. It is not only assuring but also keeps you within the limits of your affordability – and makes you a highly credible buyer whom any seller will take seriously and extend the best possible deal to. The approval should give you an opportunity to make a choice at leisure, but should not lead to the trap of landing in a circle of indecision and complacency. The pre-approved home loan should be a tool which lets you make a decision when you find a house of your and your family's choice, and to act on it.
Team Olsewski’s uses a team approach to help individuals sell, buy or invest in Real Estate; they are also experienced short sale specialists. They offer an extensive internet based marketing program that sets us apart from other agents.
Why choose a Team? The simple truth is that a team will always out-perform an individual agent. Is working with an individual a bad thing? Not at all. Once up on a time, everyone on our team was an individual agent.
Team Olsewski’s work ethic and focus while working with their clients to achieve their goals is what truly sets them apart as one of the leading real estate Team’s in Southwest Riverside County. Always working as a team to achieve their client’s goals and having the ability to sense changing market trends as well as long term projections in the real estate industry makes Team Olsewski one of the best in their profession. As a Certified Internet Marketing specialist Team Olsewski has the training and knowledge to help homeowners looking to sell gain the most online exposure for their listing. Ultimately netting them the most when they sell. Team Olsewski’s has extensive experience successfully closing tough short sales with many different lenders.
Team Olsewski has multiple dedicated buyer’s agents who work exclusively with our buyers. This maximizes the home buying process thus insuring our buyers have the best possible home buying experience.
We service the Temecula, Murrieta, Winchester, French Valley, Menifee, Wildomar, Hemet, Perris, Moreno Valley, Lake Elsinore, and Corona area’s of Southwest Riverside County.
Whether you are looking for the perfect home to suit your lifestyle or want to sell your home quickly and at the highest value, Team Olsewski is the real estate Team for you. Working with you as a team, they will help you achieve your long-term and short-term goals. Team Olsewski brings the full range of their talents to make the most out of your largest investment, your home.Call them today!
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"We had our house on the market for one year with two different realtors. Unfortunately, we did not sell our house in that year and the realtors we used were less than ideal to work with. They were the reason our house did not sell and they made empty promises without any follow through. We spent hours trying to get them to do the job we thought a realtor should be doing, basically working to get our house sold. We were at our wits end with what to do considering our house value had gone down significantly in that year. We came across Tom when we were advised to do a short-sale on our house. Tom was skilled in short-sales but we were still hesitant about any realtor because of our previous experiences.
Tom was a breath of fresh air! He was excellent to work with and was always available to answer any of our questions. He always answered his cell phone when we called him; I don’t think my husband or I ever received his voicemail when we called him. He was diligent about trying to get our house sold and had to spend countless hours trying to get our bank to accept an offer on the house. We know he put in a lot of additional time to get our house sold, but never did we hear anything but positive, reassuring comments from him. He always assured us that he would do whatever it took to get our house sold and he did just that! We finally closed on the house last week and are so blessed that Tom was our realtor. Without his expertise we would have probably ended up with a foreclosure instead of a short-sale. He did exactly what he promised he would do for us and I would highly recommend him to anyone looking to sell or buy a home! If you are looking to short-sale your home, there would be no one more qualified for the job than Tom!"