Whether youre searching for real estate in Southern California, Los Angeles, San Bernardino, Irvine, Orange County, or any other area in the geographically diverse region of Southern California , getting pre-approved before you start perusing the listings on only makes sense. But what is pre-approval, and what does it entail? Read on to find out.
The Advantages of Pre-Approval For Your Next Southern California Home Loan: Loan Pre-Approval offers the following benefits: the ability to know how much house you can afford the ability to know how much cash will be required for your down-payment, and simplification of the entire pre-approval process.
Having a pre-approved loan amount in place before you start shopping around for your next Southern California home allows you to focus in one the homes that are right for you, and avoid wasting time on the ones that arent. Listing websites allow you to do this from the privacy of your own home an extremely innovative feature, particularly if you are moving from out of state.
When you decide to obtain a Pre-Approval, the following items will be taken into consideration: Credit Rating: Its important to have a credit rating that appeals to lenders, (650 and higher) as well as to know what your credit report contains.
Several sites offer free credit reports, and you should obtain one before your lender does. This way, you can correct any errors before you receive your loan pre-qualification.
Employment History: Whether you are currently employed, as well as your employment status for the past few years can have an impact on the pre-qualification amount that you qualify for.
This doesnt mean that unemployment is a penalty just that lenders want to make sure that you are a stable, committed person, since job stability often translates into stability in other areas.
Your Monthly Income and Expenses: Your monthly income, minus your monthly expenses, is a quick way for lenders to determine how much home you can afford, and allows you, as well, to see how future mortgage payments will impact your existing budget.
Before you start your search for your dream Southern California home, speak with your mortgage lender and real estate agent about obtaining a pre-approval. Once youve been pre-approved, you can search smarter, knowing that once you find one that you like, you will be able to afford to finance it.
While the loan pre-approval process requires additional steps in the beginning, knowing your price range before you start looking will save you time in the long run.
If you are looking for Southern California Real Estate the author recommends First Team Real Estate
[tags]southern california real estate, Orange county real estate, homes for sale,property[/tags]
|
|