Buying and selling real estate is a big deal. For most Americans, a home is the most expensive purchase they’ll make in their lifetime. It’s a serious transaction with significant financial and emotional ramifications for the parties involved, and having proper representation is critical.
When you work with a real estate professional, their fiduciary responsibility is to you. That means you have an expert who is looking out for your best financial interests, an expert who’s contractually bound to do everything in their power to protect you. That’s big — the value of that commitment cannot be overstated.
We work with agents to teach our workshops. They are highly respected professionals and the class is a great way to meet, talk with and get to know a real estate agent.
Pre-Qualification or Pre-Approval
These two terms are often confusing to home buyers, so here's what you really need to know about each one.
A mortgage loan pre-qualification is simply an estimate of how much house you can afford and how much money a lender would be willing to loan you. The best time to get a pre-qualification is right at the beginning of your home buying process, before you even start looking at houses. This involves either sitting down with a lender or talking with one on the phone, and providing information on your income, assets, debts, and a potential down payment amount. The lender would then provide you with a ballpark figure in writing of how much he thinks you could afford to pay for a monthly mortgage. There is no cost involved and there is no commitment on either side. This estimate is just helpful in helping you figure out if buying a home is a viable option, and if so, what your price range would probably be.
Getting pre-approved means that you have a tentative commitment from a specific lender for mortgage funding. In this case, you provide a home loan lender with actual documentation of your income, assets, and debts. This process typically requires an application fee as well, since the bank will run a credit check and work to verify all your employment and financial information. Once you are approved, the lender will give you a letter of commitment, stating how much money her bank is willing to loan you for a home purchase. With a pre-approval in hand you can start your shopping - real estate agents and sellers will take you much more seriously when they see you have your mortgage funding in place.
Understanding affordability of a home purchase will help you make smart financial choices. Please don't hesitate to seek professional assistance by calling Curt Tiedeman, American Pacific Mortgage at 206.650.4202. After hour meetings accepted by appointment.
Curt has more than two decades of mortgage and real estate experience. He has been voted by Seattle Magazine as a Top Mortgage Professional every year from 2010 to 2016.
371 NE Gilman Blvd, Suite 340
Issaquah, WA 98027
Branch License: 1236068
Corporate License: 15622