First-time homebuyers believe that it will take a few weeks to get preapproved from a bank. Truly, a preapproval can take as short a time as a few minutes to a few hours. An online automated system will factor your salary and credit score to determine your maximum homebuying amount.
According Jason Stoeser of West Town Saving Bank, a preapproval "is basically a loan application without verification!" Keep in mind that the next step involves verification of your salary, employment, rental history, and source of funds.
Where should I get preapproved?
I suggest that all potential buyers get preapproved at their local financial institution. DO NOT use online banks like Quicken or Lending Tree because they are brokers and not direct lending institutions. I insist that my clients only use local direct lenders in the area such as Suntrust, Wachovia, Wells Fargo, West Town Savings Bank, or First Home Mortgage Corp. If you can, stay away from Bank of America because their lending requirements and practices are cumbersome and plagued with obstacles.
Should I get preapproved before looking at a houses?
Every purchaser questions why they need to get preapproved before looking at houses in the DC real estate market. I've heard every reason why purchasers think they do not need to get preapproved before the homesearch. Here is just a few examples as follows:
"I already know how much I can afford?"
"I don't need a bank to tell me how much I'm worth!"
"I have a lot of money in my bank account and my credit is excellent!"
"I went to the open house and they didn't ask me for my preapproval."
"You don't know what you are talking about!" (MY PERSONAL FAVORITE)
Here are a list of reasons to get preapproved according to About.Com
"
*Save Time by Looking at the Right Homes
If your real estate agent is sending you automatic e-mail listings of available homes, you can ask her to change the parameters to more tightly encompass the selection of homes that you are qualified to buy. If you're not receiving e-mails from your agent, ask her to send them to you. Most MLS systems allow an agent to send clients much of the same data that agents receive. This way, you'll save time by checking out homes you can actually afford to buy instead of falling in love with pie in the sky.
*Spend More Time Examining the Right Homes
By decreasing the inventory of homes to those that fit your parameters, you can allot more time to thinking about all the little nuances each home has to offer. Lots of home buyers never move past the price point when sorting out their preferences, but now you can devote your energies to looking at the little things that matter to you most such as whether your SUV will pass through the overhead space in the garage or smash into the microbeam.
*Gain Confidence & Avoid Disillusionment
Now when you find that perfect home, nobody can take it away from you by telling you that you do not qualify to buy it. You can minimize anxiety and remove last-minute loan surprises that could disqualify you. You'll sleep better at night knowing that the home you selected is yours. Moreover, you can tell your relatives and friends that the home you made an offer is definitely going to close and you will not "lose face" with anybody.
*Increase Bargaining & Negotiating Power
Sellers will be more likely to immediately accept your offer, even if that offer is for less than list price, because you are giving the seller peace of mind that her home is sold. She can take her home off the market and place it into pending status with confidence.
*Enjoy a Faster Closing Period
Because there is no window period while your loan application is processed, the lender can speed up the entire processing procedure. Appraisals can be ordered immediately. It's possible to shorten a 30-day closing to two or three weeks, which comes in handy if a seller needs to quickly move and can't decide which offer to accept. Yours will move to the front if you can accomplish the seller's need to quickly close."
According Jason Stoeser of West Town Saving Bank, a preapproval "is basically a loan application without verification!" Keep in mind that the next step involves verification of your salary, employment, rental history, and source of funds.
Where should I get preapproved?
I suggest that all potential buyers get preapproved at their local financial institution. DO NOT use online banks like Quicken or Lending Tree because they are brokers and not direct lending institutions. I insist that my clients only use local direct lenders in the area such as Suntrust, Wachovia, Wells Fargo, West Town Savings Bank, or First Home Mortgage Corp. If you can, stay away from Bank of America because their lending requirements and practices are cumbersome and plagued with obstacles.
Should I get preapproved before looking at a houses?
Every purchaser questions why they need to get preapproved before looking at houses in the DC real estate market. I've heard every reason why purchasers think they do not need to get preapproved before the homesearch. Here is just a few examples as follows:
"I already know how much I can afford?"
"I don't need a bank to tell me how much I'm worth!"
"I have a lot of money in my bank account and my credit is excellent!"
"I went to the open house and they didn't ask me for my preapproval."
"You don't know what you are talking about!" (MY PERSONAL FAVORITE)
Here are a list of reasons to get preapproved according to About.Com
"
*Save Time by Looking at the Right Homes
If your real estate agent is sending you automatic e-mail listings of available homes, you can ask her to change the parameters to more tightly encompass the selection of homes that you are qualified to buy. If you're not receiving e-mails from your agent, ask her to send them to you. Most MLS systems allow an agent to send clients much of the same data that agents receive. This way, you'll save time by checking out homes you can actually afford to buy instead of falling in love with pie in the sky.
*Spend More Time Examining the Right Homes
By decreasing the inventory of homes to those that fit your parameters, you can allot more time to thinking about all the little nuances each home has to offer. Lots of home buyers never move past the price point when sorting out their preferences, but now you can devote your energies to looking at the little things that matter to you most such as whether your SUV will pass through the overhead space in the garage or smash into the microbeam.
*Gain Confidence & Avoid Disillusionment
Now when you find that perfect home, nobody can take it away from you by telling you that you do not qualify to buy it. You can minimize anxiety and remove last-minute loan surprises that could disqualify you. You'll sleep better at night knowing that the home you selected is yours. Moreover, you can tell your relatives and friends that the home you made an offer is definitely going to close and you will not "lose face" with anybody.
*Increase Bargaining & Negotiating Power
Sellers will be more likely to immediately accept your offer, even if that offer is for less than list price, because you are giving the seller peace of mind that her home is sold. She can take her home off the market and place it into pending status with confidence.
*Enjoy a Faster Closing Period
Because there is no window period while your loan application is processed, the lender can speed up the entire processing procedure. Appraisals can be ordered immediately. It's possible to shorten a 30-day closing to two or three weeks, which comes in handy if a seller needs to quickly move and can't decide which offer to accept. Yours will move to the front if you can accomplish the seller's need to quickly close."
About the Author:
Learn more about logan circle real estate. Stop by Jason Trotman's site where you can find out all about Washington DC real estate and what it can do for you.
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