• Over $1 Billion SOLD in California - Our Active Listings = $109,114,000+

Get Pre-Approved

Preparing Your Finances

Keep Your Money Where It Is
It’s not wise to make any huge purchases or move your money around three to six months before buying a new property. You don’t want to take any big chances with your credit profile. Lenders need to see that you’re reliable and they want a complete paper trail so that they can get you the best loan possible. If you open new credit cards, amass too much debt or buy a lot of big-ticket items, you’re going to have a hard time getting a loan. Yes, this means whatever you do – BUY THE NEW CAR, AFTER YOU BUY YOUR PROPERTY!

Get Pre-Approved for a Loan or Have Bank Statements Ready

Using A Loan

There’s a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can’t afford. It also gives you the opportunity to shop around for the best deal and the best interest rates. Do your research: Learn about junk fees, processing fees or points and make sure there aren’t any hidden costs in the loan.

Paying Cash

Make sure that you have your cash in liquid accounts and be prepared to provide a bank statement (with all pages) matching the name that you will be using to purchase the property. This will usually be required by the seller instead of a pre-approval letter.

Understand your Buying Potential

Before you begin to seriously looking for a property, you should contact an Associate from The Local Realty to learn how to get pre-qualified and then, pre-approved for a mortgage.

  • Pre-qualification is the preliminary step toward obtaining a pre-approval. It simply means running what-if scenarios like how much a home would cost with a fixed rate as opposed to an adjustable rate mortgage.
  • A pre-qualification is a guideline that may help you determine a general price range you can afford, but a pre-approval is a firm number based on the lender’s analysis of your credit scores, assets, debt-to-income ratios, and other financial information.
  • To get pre-approved, you must provide your lender with personal information including your social security number, bank statements, debts, and obligations such as child support, so she can run a credit check.
  • Your pre-approval is the maximum you qualify to receive, but you can certainly spend less. Consider whether your maximum mortgage payment will fit comfortably into your current budget and future plans.
  • Your mortgage payment should be no more than 25 to 33 percent of your monthly gross income, and your total debt-to-income ratio should be less than 38 to 40 percent of your gross income.

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The Local Realty

The Local Realty is the leading International Lifestyle Real Estate Brokerage specializing in Local Real Estate Services. All of our Real Estate Associates specialize in a specific Community or Property type in order to provide the highest level of service and Local Real Estate Market expertise to our clientele.

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