How To Get Pre-Qualified or Pre-Approved For a Mortgage (Or Home Loan)

Working closely with a lender is an important part of my business.  I like to stay informed and help my clients understand everything about buying a home.  Many people have heard a lot of real estate terms, but don’t always know what they mean.  I asked a loan officer to help explain the initial qualification process for me.  This is what he had to say about Pre-Qualifing/Pre-Approvals:

This is a touchy topic these days with all the different regulations and laws that have come out. Everyone has to step lightly as to not get in trouble for saying the wrong things that could be taken as misleading or misguiding.


Take for example the words pre-qualification, and pre-approval. As a loan officer, you are not allowed to market a "Pre-Approval" anymore because "Approval" indicates you just approved a person for a specific loan. Although loan officers can issue pre-approvals, it is not allowed on marketing materials because it simply cannot be done correctly until a borrower has picked out a property, and a full loan application has been made.


"Pre-Qualification" simply means to sit down and cover the very basics of getting a loan. This simply means that you are "Qualified" to apply for a mortgage and have high chances of obtaining a mortgage and so this is the lingo they want loan officers to use. This is what realtors and sellers want to see happen before you write an offer on a house. Once you have a letter from a lender they then begin to take you seriously.


This is good for you too. You need to know you qualify for a loan (mortgage) before you buy anyway. And after the process is complete the loan officer can tell you how much money you qualify for, what payment ranges will be, and also a lot more needed information that you might not realize you need to know.


The process usually should take only 10-15 minutes. You can fill out information online, over the phone, or in person. Most people love a in person meeting at their place of business because of fraud these days. 


What information a loan officer will need during the pre-qualification is your rough estimated income (gross- not after taxes!) to see what debt to income ratios you are at. He then talks to you about your overall credit situation, and then other details associated with each individual that may effect things like if you have any money to put down, etc. Every transaction is different and it is best at this point to be very open and give all the information you can.


After you sit and talk, your loan officer should be able to tell you what loan programs you qualify for or if there are any challenges you need to overcome before looking for a home. But, if you do qualify, your loan officer should issue a letter for you to give to your realtor to put an offer in on a home you love!

If you want to do this, contact David:

David DuBeau – Loan Officer

Sterling Savings Bank

541-292-9663

541-608-2161

www.DavidDuBeau.net

Once you're pre-approved, "Let's Go Shopping!"   Shopping for a home has never been easier.  I can send you information via email so you can preview many homes from your computer.  Then, you can select which ones that best fit your criteria and then we see those in person.   We can have you in a home sometimes in less than 30 days.

For a list of properties, give me a call:

Cheryl Malone – Real Estate Broker

Windermere Investors Marketplace

541-951-1960

www.CherylMalone.com

Remember, the first step in buying a home is to get pre-qualified on a home loan! 

Sellers do not like to deal with buyers who might not qualify. There are plenty of different options out there (even up to 100% financing). 

So get the best Realtor / Real Estate Agent and Loan Officer in Medford and the Rogue Valley working for you today.

Want to buy a home with no money down?

If you want to buy a house with no money down, you have come to the right place.  Luckily, there are programs out there that allow 100% financing.

Many people today have lost their retirement investments or equity in their homes, but still make enough money to afford a house payment.  There are many benefits to owing a home like tax deductions, pride of ownership and appreciation in value.  With todays interest rates and low home prices, it is a great time to take advantage of these 100% financing programs.

If you are a veteran you may qualify for a 100% financed VA loan.  There is also a 100% financing USDA program for rurual properties.  Both of these programs allow for the seller to pay a portion of your closing costs.  How much better can that get?

So, give me a call and we can see if you can fit into one of these programs.  A new home is just a phone call away !

Cheryl Malone

541-951-1960

Veterans Helping Veterans - First Time Homebuyers Tax Credit - VA Loans

I had this article published in one of our local papers today...

Exciting News For Veterans

Windermere Investors Marketplace in Medford and Jacksonville has teamed up with David and Micah DuBeau of Sterling Savings Bank to let the veterans know that many of them may still be eligible for the $8,000 or $6,500 First Time Home Buyer tax credit.

These credits have been extended to members of the military and certain other federal employees serving outside of the U.S. on qualified extended duty service for at least 90 days during the period beginning after December 31, 2008 and ending before May 1, 2010. However, to take advantage of these credits, an eligible taxpayer must purchase, or enter into a binding contract to purchase, a principal residence on or before April 30, 2011.  The eligible taxpayer then has until June 30, 2011 to close on the purchase.

This is an enormous benefit to our veterans! We do not feel there has been enough media coverage which is why we are trying to get the word out as the window of opportunity is about to close.

There are many financing options available to eligible veterans including 100% loans.  They are easy to apply for and the process has been streamlined.  Often eligibility can be determined within 48 hours, it's easy.  No DD-214 is required.  David and Micah are veterans, having recently served in Iraq themselves and they take pride in serving their fellow veterans.

When you combine a 100% VA loan, a Realtor that negotiates the seller paying their closing costs, a low priced foreclosure home, and an $8,000 tax credit - things get exciting.  Interest rates are at a historical low... it's a great time to buy.  We want all the veterans to experience The American Dream, homeownership.   We would like every eligible veteran to have the chance to take advantage of this great opportunity.  Veterans should check with their tax advisor regarding eligibility.

Sincerely,

Cheryl Malone  541-951-1960
Windermere Investors Marketplace

David DuBeau  541-608-1800
Micah DuBeau  541-608-2161
Sterling Savings Bank

Want To Sell Your Home Fast? What You Can Do To Help.

What can I do to sell my home faster?  This is a question that most sellers should be asking their agents and themselves.  Besides pricing it competitively, there are several things that the seller can do to increase their chances of a fast sale.   You have to remember - you market your home differently than you live in your home.   

With so many homes for buyers to choose from right now, you have to make your home stand out from the rest. There are many ways to do this.

1-    You can hire someone to come in and “Stage” your home.  This entails rearranging your furniture to make the home look more spacious, de-cluttering, putting away personal items, changing lighting, art and paint as needed.  The Staging concept has been very effective in most cases.  This service could run anywhere from $500 on up depending on what is needed.

2-    If you can’t afford someone to Stage your home, then there are several low cost things you can do to help.  The most important is de-cluttering.  You are planning on moving, so go ahead and start packing up what you don’t need right now.  They say you should pack up about half of your belongings and store them in the garage.  If you have a lot of stuff in the closets and on shelves, etc. it gives the appearance that there is not enough storage in the home.

3-    Another thing you should do is put away most/all of your family pictures and personal items on your desk, dresser, counters and bathroom sink.  When buyers walk in they start looking at all your stuff (its human nature) and don’t really visualize themselves living in the house.

4-    Paint is a wonderful thing… it’s not too expensive and is easy to do.  It really makes a difference in the appearance of a “well kept house”.

5-    Cleaning is one of the most overlooked things that should be done.  Clean your mini blinds, ceiling fan blades, light switch covers, baseboards, etc.  A good spring cleaning any time of the year is a must.  The only thing it costs is some “elbow grease” and you will really notice the difference.

These are only a few things you can do.  If you have some larger items you don’t want, try posting them on Craigslist – it is free.  Everyone is using the internet these days, so take advantage of it and put a few bucks in your pocket too.  The smaller items can be sold on eBay.  I have sold many things on eBay, so the possibilities are endless on what you can get rid of.  If you need help with eBay, let me know I can get you set up – it is pretty easy once you know how.

So, if you want to list your house for sale, give me a call and I can help get you get started on preparing your home for sale and getting top dollar.  Remember, you have to do something different then the rest to grab these buyers attention.  Make your house feel like a home and have an advantage over these distressed properties that are vacant and cold.  There are a lot of buyers that want to just move right in and your home could be the one for them!

Cheryl 541-951-1960