A pre-qualification letter is the most important asset for you if you are seriously thinking of buying a house. It is not merely a piece of paper that proves your creditworthiness; it is a useful device that you can use to assertively negotiate with the seller. Furthermore, this letter helps you demonstrate that you are genuinely interested in the property and a reputed financial institution is ready to provide funds for your purchase. As the result, the seller starts listening carefully to all you concerns, demands and wishes. After considering the importance of a pre-qualification letter, let's take a look at the step-by-step procedure to pre-qualify to purchase a home.
How much money do you spend per month?
Take a pen and paper and note down all your monthly expenses. From telephone, electricity and gas bills to credit cards, shopping and entertainment bills; each and every expense should be included in the list. Don't forget to add the house rent, school and college fees, transportation costs and house repair and maintenance charges. The yearly payments like property tax, license plate, home and auto insurance should also be included after dividing them with 12.
How much money do you earn each month?
The amount of money that you and your spouse get in hand should be taken into account. Besides these, the earnings from a part-time or online business should also be included. The monthly interests that you are getting from your investment should be considered.
What is the difference between your earnings and expenditure?
Add all the expenses together and likewise add the earnings, and subtract the two totals. The result you get is amount you can use to pay off the home loan that you would take to buy your dream home. On the internet, there numerous mortgage calculators available; use anyone of them to find out the amount of home loan that can be issued to you, the number of years that you would need to pay back the loan and the monthly payment that you would have to make to clear the debt. This is the basic information that you should know before contacting a mortgage lender.
What is the right time to contact a mortgage lender?
Once, you know the actual amount of home loan you can afford to pay back, you should get in touch with a reputed mortgage lender. You should clearly state your terms and conditions before him as well as your needs and requirements. On the basis of your calculations and documents, the lender will put forth the quotation. In order to get the best quotation, it is essential to shop around a bit.
What all needs to be done to get the pre-qualification letter?
After you get the best deal that fulfills all your demands and wishes, ask the mortgage lender to lock the current interest rate on the home loan. The lender will provide you the pre-qualification letter and at the same time send the copy of the letter to your real estate agent. When you pre-qualify to purchase a home, you should immediately start searching for a property that fits into your budget.
For some of the best real estate properties, take a look at
Mirabel Scottsdale AZ Homes,
Desert Estates Scottsdale AZ Realty and
Scottsdale AZ Golf Homes.
