Pre-Qualification or Pre-Approval
Getting pre-qualified for a mortgage is step one of the process and necessary to complete prior to your first house-hunting appointment with the Melton Team. Just like any large purchase that requires a loan, it’s pivotal for a buyer to be financially prepared to act prior to finding a home. This information is equally important for your buyer’s agent to know. That way, your agent knows the price range of homes to show or suggest to you. Likewise, Erin will be aware of how much in seller concessions is required to assist her buyer. Getting pre-approved can be done by contacting your current bank, credit union or one of The Melton Team’s preferred lenders. Every lending institution has a variety of avenues by which you can seek qualification; it can be done in person, over the phone or by filling out a secure online application. There are significant advantages to working with a locally-based loan officer. However, it is equally important that you don’t attempt to receive qualification from a strictly internet-based lender.
If you are looking to utilize your VA/0% down home loan benefits when purchasing a home, understand that you must still be pre-qualified for a mortgage with a lending institute. VA simply guarantees a portion of a Va loan; they are not lending you the money. Likewise, FHA and VHDA products still require you to be qualified for a mortgage.
Just like submitting a rental application, your credit will be reviewed during the pre-qualification process. Furthermore, you will need to provide written documentation regarding your household income, checking/savings account balances, tax returns, debts and any court-ordered expenses. These factors will determine your qualification amount, interest rate, type of loan and any down payment/closing cost requirements. Based on this information and your desired monthly payment, the loan officer will provide you with a good faith estimate and pre-approval letter. This estimate details your monthly payment to include interest, taxes and insurance. It will also detail the amount of money you’d owe at closing, to include any down payment or closing costs. Closing costs consist of the many costs associated with obtaining a mortgage such as escrows for taxes/insurance, daily interest, attorney fees, title insurance, appraisal, and a survey.
For more details regarding purchasing your first home, please contact Erin Melton at: 757-784-1358 or visit her team website at: http://tidehomes.com. Please note that Erin Melton is a licensed Realtor in the State of Virginia. She is not a mortgage broker. The above article is for informational purposes only. Please contact a lending institution for specifics regarding loan programs and your eligibility.
Effective July of 2012:
Virginia law REQUIRES all brokerage relationships between a licensed real estate agent, buyer, tenant, seller and landlord to be disclosed in writing. This is not a change for The Melton Team. It has always been a team policy to establish a working relationship with each of their clients in writing through an exclusive buyer brokerage agreement, exclusive right to sell listing agreement or exclusive right to lease listing agreement. Unrepresented parties viewing any of Erin Melton’s personal listings must sign an updated disclosure form stating that she represents the owner of the property.