Tagged: home loan

Why should buyers have pre-approvals?

When looking to buy properties, it is natural to be very excited and want to start visiting homes as soon as possible. In that excitement, you may hold off on the important step of starting a mortgage pre-approval. A pre-approval is a preliminary evaluation of your finances and credit worthiness to determine whether you may be approved for financing. It is not a guarantee for a mortgage, but a guess prior to a full mortgage application. Having a pre-approval letter in-hand is important for a variety of reasons. This blog details reasons why buyers should have pre-approvals before visiting New Jersey properties.

Understand Your Options

Financing requirements and mortgage rates change regularly. A pre-approval provides an understanding of the programs and options that you can use, what your up-front expenses will be, and more importantly, what you can purchase. Without this information, you may waste valuable time visiting homes that you can not finance or that are basically beyond your affordability. Identifying your price range also saves you the heartache of visiting and wanting a property that you cannot have. This is one of the most important reasons why buyers should have pre-approvals before visiting New Jersey properties.

Purchase Power

New Jersey properties with highly sought after amenities or the best price tend to move fast. A pre-approval gives you the power to make an offer on that perfect listing. When you prepare an offer, you normally must include a pre-approval letter. This demonstrates to the seller that you are ready, willing, and able to purchase. It is unlikely that a seller would consider an offer and move forward with a buyer without any documentation that a buyer can even obtain a loan. In multiple offer situations, a pre-approval is even more essential.

Saving Time

A pre-approval saves time when making an offer and on the processing of a loan. Most sellers request a pre-approval with offers. Not having one ready will lead to delays in submitting your offer and may result in a missed opportunity. Pre-approvals involve reviewing documentation of income, assets, debts, etc. This can take a couple of days based on whether you have the documentation readily available. Errors in your credit reports can cause additional delays. Starting and addressing this step in advance will also save significant time when processing your loan and achieving a quick closing.

Reasons Why Buyers Should Have Pre-approvals Before Visiting New Jersey Properties

The information above on reasons why buyers should have pre-approvals before visiting New Jersey properties is something to remember when thinking of buying a home. The home buying process can be complicated and stressful to begin with. Being diligent and prepared can reduce the stress and issues encountered along the way. For additional guidance, contact Sujatha Bhaskara at Keller Williams Realty by emailing sbhaskara@optonline.net or calling 732-536-9010.

I invite you to begin your Marlboro, NJ home search at www.bestinnjrealestate.com, a great buyer resource. Here you can save your favorite properties, set up a custom listing alert for homes in Marlboro that meet your needs, view Real Estate trends in the area, get local Marlboro, NJ school and community information, and much more!

Mortgage approval factors for homebuyers

Mortgage Approval Factors For Marlboro NJ BuyersPre-approvals do not guarantee final mortgage approval. Lenders perform a thorough analysis prior to giving an approval. This formal process does not often begin until after a property is identified as they must look at both the financial information of Marlboro NJ buyers and specifics of the real estate being purchased. The following are a few mortgage approval factors for Marlboro NJ buyers.

Financial Data Assessed

Ability to Repay the Loan

Mortgage Companies will analyze your assets, earnings and debts to determine whether you can make the monthly payments. Good savings and a regular work history demonstrate economic health. The amount and kinds of bills you maintain are also factors. Lenders gauge not only your present situation. They also attempt to figure out the future capability to pay bills.

Willingness to Repay the Mortgage

Mortgagees assess how likely buyers are to continue paying over the life of the mortgage. This is where credit history is important. Your previous conduct is the best predictor of future behavior. A bad credit background may weaken your prospects of obtaining a home loan or lead to larger interest rates.

Property Concerns

Appraised Price

Lenders depend on appraisers to provide important data on a property. The most essential part of an appraisal is the valuation, which is given in an exact figure. Mortgage Companies grant loans up to a specific percentage of the market value and the appraisal is applied to confirm that number.

Mortgage Company Protection

After a mortgage is issued, mortgage companies want assurances that their investment will be protected. They typically expect title insurance. For mortgages with low down payments, mortgage insurance may also be required. The amount of both title and mortgage insurance may differ depending on the loan type and can ultimately impact the amount a buyer can afford.

More Mortgage Approval Factors For Marlboro NJ Lenders

Lenders may take a few weeks to examine a mortgage application before granting an approval, a denial, or asking for more details. Approval criteria can differ based on the kind of loan and the situation of the buyer or home. The mortgage approval factors for Marlboro NJ buyers above include just a few general factors to be cognizant of. Always consult with a mortgage consultant for guidance on your real estate purchase. Contact Sujatha Bhaskara at 732-536-9010 or sbhaskara@optonline.net for more advice on this and other similar topics.

I invite you to begin your Marlboro, NJ home search at www.bestinnjrealestate.com, a great buyer resource. Here you can save your favorite properties, set up a custom listing alert for homes in Marlboro that meet your needs, view Real Estate trends in the area, get local Marlboro, NJ school and community information, and much more!