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

Are You Looking Out And Saving For Your Future?

When most people think about that question, they usually think about how much money they have in their savings or retirement account.  I think it is really hard for people to put money in the bank and leave it alone.  It is very hard to "save" for the future that way.

There is a better way to save, which still requires some restraint.  Buying a home... and NOT REFINANCING.  Once you buy your home, leave it alone... let the equity build.  You are going to need it one day, when you are old/older.  Is social security going to be there for you?  If so, is it enough?  Probably not. 

My way is a simple and easy way to save - if you keep your hands out of the pot!  Another thing people don't think about doing is paying an additional $100 per month towards the principle on their mortgage.  Don't put that $100 in the bank... include it with your mortgage payment as principle only and at the end of 10 years you will have brought your loan balance down by $12,000.  Wow, that is money in the bank - that you can't touch until you REALLY need it.  How many of you can have $12,000 in the bank and not touch it?  Be honest... not that many.

Food for thought - money in the bank actually!

If you want to buy a house... give me a call - you will be glad you did.

Cheryl Malone
541-951-1960

www.sellingoregonhomes.blogspot.com

FACEBOOK ANYONE ?

How many people have a Facebook or should I ask how many people don't?  Facebook has been very good to me.  I have reconnected with some of my old friends from school, which has been a lot of fun to see where their lives have taken them.  It is definitely a way to feel connected to people on a regular basis, without feeling like you are intruding into their life.  They post what they want you to know and it takes off from there into some interesting places !

It is nice that you can select who you want to be "friends" with and share only what you want to share with others.  Overall, it is fun to have.  Now in saying that, you can have too much fun if you get addicted to the games they have like Farmville and Cafe World.  I use to plan my whole day around when my "Farmville" crops were going to be ready to harvest.  Ain't that a hoot !  Luckily that only lasted for a few months and then I wised up and quit playing, cold turkey.  My farmhouse and crops have probably turned to dust and tumbleweeds by now... I don't dare go and check.

I just made a Facebook page for my business, I have not put anything on it yet.  Hopefully it will be a fun and informative place for my clients to check out.  We will see how that develops.  Happy Facebooking !

Check out my other blog:

http://sellingoregonhomes.blogspot.com/2011/02/rent-vs-own-should-i-buy-house-in.html

WANT TO BUY A HOME IN MEDFORD, OREGON - How easy is it?

So, you want to buy a home in Medford, Oregon ?  The process of buying a home can be easy, if you are prequalified and teamed up with the right professionals.  The first step in buying a home is talking with a lender.  It is important that you know how much you can afford, before you go out "shopping" for a new home.  Once you know what fits your budget, the rest should be easy. 

Working with the right lender - loan officer is one of the most important things you can do.  If they can't get your loan approved, the deal won't close - then everyone is disappointed.  Try and use a local lender and one that your realtor knows can deliever. 

There are many different loan programs available right now. A good loan officer will pick the best one for you.   There is 100% financing available through the USDA and VA programs.  They even have extended the First Time Homebuyer's Credit of $8,000 for some VA buyers for a limited time only (call David and Micah Dubeau for details). 

Getting prequalified can be done over the phone or in person.  It is easier then most people think and with the low interest rates many are surprised that they qualify for more than they thought !

IF YOU WANT TO BUY A HOME IN MEDFORD, OREGON then give me a call at 541-951-1960 or contact David and Micah DuBeau the BEST LENDERS IN MEDFORD FROM STERLING SAVINGS BANK at 541-292-9663... we will get the job done - you won't be disappointed !

View my other blog:

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