For the Ca First Time Home Buyer it would be to their advantage to get pre-approved for a house loan, than to be pre-qualified. Pre-qualification is basically the determination by a lender of your ability to borrow and how much they may lend you. It does not guarantee that you will be pre-approved or actually be given a loan.
To become pre-approved, one will have to go through an indepth and comprehensive process. In this process, the lender will ask that you submit all the required documents and have all the forms filled and duly signed, just as if one was applying for a loan. Once received, the lender will then hand your documents to the Loan Underwriter to be reviewed. An important area that the Underwriter will be looking at is your credit score, as it covers several areas not just your finances.
In calculating your credit score, several factors are considered and this is represented by a three digit number. Your credit history, the amount of money you can borrow on credit. Your job history or how long you stay in a job or if you move around a lot. Your present address and how long you have lived there, do you move addresses often? This information is important as it can raise red flags in your application. Although other factors will be looked at, your credit rating is most important and should be guarded carefully.
Once approved the Ca first time home buyer now has a commitment for a house loan from a lender that is good for a specified period of time. Obviously this will be subject to certain conditions, namely it will be good for a specified period of time, and that there will be no change in your financial position, literally. If the interesr rate looks low on approval try and lock it in, or your lender may lock it in for the period of the offer only, but definetly lock in a rate when you settle on a house.
It is to your benefit to get pre-approved for a houe loan before looking for a house. It allows you to see exactly where you are with your credit score and what you need to do to improve it, if you have to. Knowing how much you can borrow and what first time home owners assistance you are good for, and how much tax credit you are allowed is also a big benefit. It also shows the seller how serious you are.
Being pre-approved will empower the Ca FirstTtime Buyer with the ability to make profitable decisions when negoating their first house purchase. A decision that they will be happy with for a long time.
To become pre-approved, one will have to go through an indepth and comprehensive process. In this process, the lender will ask that you submit all the required documents and have all the forms filled and duly signed, just as if one was applying for a loan. Once received, the lender will then hand your documents to the Loan Underwriter to be reviewed. An important area that the Underwriter will be looking at is your credit score, as it covers several areas not just your finances.
In calculating your credit score, several factors are considered and this is represented by a three digit number. Your credit history, the amount of money you can borrow on credit. Your job history or how long you stay in a job or if you move around a lot. Your present address and how long you have lived there, do you move addresses often? This information is important as it can raise red flags in your application. Although other factors will be looked at, your credit rating is most important and should be guarded carefully.
Once approved the Ca first time home buyer now has a commitment for a house loan from a lender that is good for a specified period of time. Obviously this will be subject to certain conditions, namely it will be good for a specified period of time, and that there will be no change in your financial position, literally. If the interesr rate looks low on approval try and lock it in, or your lender may lock it in for the period of the offer only, but definetly lock in a rate when you settle on a house.
It is to your benefit to get pre-approved for a houe loan before looking for a house. It allows you to see exactly where you are with your credit score and what you need to do to improve it, if you have to. Knowing how much you can borrow and what first time home owners assistance you are good for, and how much tax credit you are allowed is also a big benefit. It also shows the seller how serious you are.
Being pre-approved will empower the Ca FirstTtime Buyer with the ability to make profitable decisions when negoating their first house purchase. A decision that they will be happy with for a long time.
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