When you are getting ready to purchase a new home, there are at least two steps that you must take.
The two basic steps are becoming pre-approved and pre-qualified.
Danielle Leong with Central Pacific Bank said, "pre-qualified is basically the first step. That’s someone who’s interested in purchasing a property. That’s the first step that’s taken. You want to get together with a loan consultant. You want to ask them what they qualify for….they want to know what they qualify for."
The first questions involve monthly income – leading up to how much you can afford for a monthly mortgage. It’s really more of a conversation. After that, there’s pre-approval.
"A pre-approval takes it a step farther. What we"re doing is we’re gathering that documentation and we’re reviewing it for accuracy and we’re making sure that the numbers all work. We’re also running a credit report because we want to make sure their credit allows them and has the ability to allow them to purchase," said Leong.
When pre-approval is done, the lender knows all it needs to know. You will virtually be ready to buy a house…and that is good news when you’re in the market.
"We’ve gone through all their taxes and we’ve outlined all the questions. They’re ready to buy. They actually have an idea of what they can purchase and they can go out and start looking which is very attractive to a seller," said Leong.
Following pre-approval from the lender, the field is wide open. Your realtor and the seller’s realtor can begin negotiations on the home buying adventure.
"And then we basically give you your idea of what you have in the way of purchase power to go out and start shopping which really gives your realtor an edge to start honing in on what you’re able to buy," said Leong.
Danielle says the main thing to remember is 2-2-2-2. You will need two years of tax returns, two years of w-2′s, two years of bank statements and your last two pay stubs. These things will all help you get pre-approved.
See the original article at: KHON2 Local News
