Few people can buy a home for cash. According to the National Association of REALTORS® (NAR), nearly nine out of 10 buyers of Virginia Beach VA homes finance their purchase, which means that nearly all buyers — especially first-time purchasers — require a loan. The real issue with real estate financing is not getting a loan (almost anyone willing to pay lofty interest rates can find a mortgage). Instead, the idea is to get the loan that’s right for you — the mortgage with the lowest cost and best terms.
Realtors routinely urge prospective buyers to get pre-approved for a loan before they even begin looking at Virginia Beach VA homes. They also stress the importance of obtaining a letter of pre-approval rather than of pre-qualification. Although many homebuyers use these two terms interchangeably, there are significant differences between the two. Simply stated, pre-qualification lets sellers know that a prospective buyer of their Virginia Beach VA home is likely to qualify for a loan, whereas pre-approval, although not an absolute guarantee, indicates that a loan officer has determined a borrower is credit-worthy and financially able to qualify for a certain loan.
The advantages of searching for a Virginia Beach VA home with evidence of pre-approval in hand are many. In essence, they include the following:
- Mortgage preapproval is going to tell you exactly how much money you can borrow. This way, you will know how much your mortgage payment is going to be ahead of time.
- You won’t waste time (or be sorely disappointed) by looking at houses you can’t afford.
- Sellers and Realtors will take you seriously. They are much more comfortable with the certainty that you can obtain a loan (and that the deal won’t fall through), and thus may be more willing to negotiate.
- Once you find a home, the mortgage process can proceed more quickly because your lender will already have.
Although lender requirements for pre-approval may vary somewhat, be prepared to supply the following information:
- Purchase Agreement
- Social Security Number and Date of Birth
- W-2/1040 Forms
- Recent pay stubs
- Bank account statements
- Credit card statements
- Debts and liabilities
- Mortgage or rental histories
- Investment properties
- Asset statements
- Personal property
- Current and previous statements
Supplying all this information may seem like a time-consuming process, but in the end of your house-hunting journey, you’ll be glad you did it!
April Partida is a Professional, Experienced and Results Oriented, Top Virginia Beach VA Realtor committed to meeting your needs.
April has distinguished herself as a leader in the Virginia Beach Virginia real estate market. April assists buyers looking for Virginia Beach VA real estate for sale and aggressively markets Virginia Beach homes for sale. April is also a Short Sales and Foreclosures Resource Specialist (SFR). Avoid foreclosure and short sale expert, committed to helping families in financial hardship find options to foreclosure.
You can reach April at 757-227-1777 or by email, email@example.com.
ALL of the information, NONE of the obligation!