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.

Oregon Real Estate Transfer Tax - We Need Your Help - No More Tax !

I just cut and paste this email I received... lets not let this happen... check out the website below and sign the petition.  Thanks in advance for your help...

Home ownership has long been the cornerstone of the American Dream. A real estate transfer tax pushes this dream a little farther out of reach for families. Unfortunately, most areas of Oregon already have the dubious distinction of being some of the least affordable housing markets in the country. A tax on the sale or transfer of real estate would make it even more unaffordable.

Consider the first time homebuyer: After several years a young family finally saves up enough money for a down payment to purchase their first house. Imagine if they also had to come up with a 1.97 percent tax on their $200,000 home. This would add an additional $3,940 in closing costs. As most of you know, this could easily be the difference that forces them to walk away.

What is a real estate transfer tax? This is a tax imposed by a state, county, or city when ownership of property (agricultural, commercial or residential) is sold or transferred. In simple terms, it is a sales tax on your home or property. Real estate transfer taxes are usually one-time fees paid at the time of closing and are usually a percentage of the selling price (rates typically vary from .1% to 4%) of the property value. This could result in multiple layers of taxation on a single transaction and is imposed whether or not you make any profit on the sale.

Lets keep the American Dream alive for the First Time Homebuyer, young and old alike. 

You can help prevent this tax from being imposed in Oregon.

Visit  http://www.protectoregonhomes.com/   to get involved and protect the dream of home ownership for all Oregonians.

View my other blogs:
http://sellingoregonhomes.blogspot.com/2011/02/want-to-buy-home-in-medford-oregon-how.html

http://sellingoregonhomes.blogspot.com/2011/02/to-buy-or-not-to-buy-real-estate-that.html

http://sellingoregonhomes.blogspot.com/2011/02/100-financing-available-on-real-estate.html

TO BUY OR NOT TO BUY REAL ESTATE - That IS the question !

Wow, what a question.  Will property values fall any lower?  Will there be more foreclosures & short sales?  Can I get a better deal on a home if I wait longer?  How long will it take for the market to fully recover?  THESE ARE GOOD QUESTIONS TOO.  I guess nobody really knows the answers to these questions, but what I do know is that a real estate investment can be a very, very good thing... if you think long term.  There is NO QUESTION about that. 

Real Estate has been very good to me... want to hear my story... give me a call 541-951-1960 Cheryl