Get pre-approved before you go shopping for your new Tamaqua home

When you want to purchase a home in Tamaqua, one of your first steps should be meeting with a local lender and getting pre-approved for a loan.

 

This step is important for 3 reasons:

 

1. You'll know what you can spend. Looking at homes you can't purchase not only wastes your time, it's depressing. And, as many home shoppers have learned, once you switch to homes you can afford, none of them will please you.

2. You'll know if you need to restrict your search to Tamaqua homes that meet certain requirements. VA and FHA both have guidelines regarding the homes that will qualify for their financing.

 

3. When you have a pre-approval letter in hand, it's more likely that your offer will be accepted, or at least considered.

 

In fact, if you're shopping for bank-owned homes or short sales here in Tamaqua, an offer without a pre-approval letter will probably be rejected as a matter of routine. Many private sellers are taking the same attitude – they don’t want to make their home unavailable to others unless they’re pretty sure you can close.

 

Don’t mistake a Mortgage Loan Pre-Qualification for a Pre-Approval.

 

There is a huge difference between the two. A pre-qualification is done with no verification. As a result, it doesn't mean a thing to either private sellers or banks.

 

You simply talk with the mortgage lender and tell him or her about your situation. You state your income and your expenses, discuss your employment history, and answer a few questions about your credit. Then they tell you if you appear to be qualified.

 

When you become pre-approved it means the lender has verified your income, assets, down payment availability, and employment. He or she has also checked your credit. So unless you do something to change the picture, you will be able to get a home loan for the amount the lender quotes.

 

Note that not doing anything to change the picture is vitally important. You mustn’t draw down your bank accounts, make new purchases beyond daily living expenses, let a vendor check your credit, change jobs, book a vacation, or make a late payment. Any of those things will change your credit picture and could void your pre-approval.

 

If you need to find a good lender, get in touch (edentroxell@yahoo.com) I'll be happy to provide you with a list of Tamaqua lenders who have served my clients well.