Purchasing A Home


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    Home Loan 
    Preapproval
    A home loan preapproval shows you are a buyer to take seriously. A mortgage preapproval tells you exactly how much a lender is willing to offer you. The preapproval process is quite thorough, by comparison with a mortgage “prequalification.” With a home loan preapproval, you’ll share all your vital financial information with the potential lender. They also check your credit score, which will help determine whether they will consider the loan and as to what terms and what interest rate. Your credit report is an important piece of your financial history as it shows lenders as to how well you’ve handled paying back credit in the past and gives them a better idea how responsible you will be going forward. Once all your financial information has been reviewed, you will receive information as to how much money they’re willing to lend you in the mortgage. To do this, they figure out your debt-to-income ratio, which tells them how much money you have to cover a monthly mortgage payment after all your fixed debts are paid. Different types of loans require different DTIs, but your mortgage lender will help you know what sorts of loans you qualify for. If something were to change in your financial life (ex: decrease in income, increase in debt), that could make a difference in whether you get the mortgage, but overall, a home loan preapproval is a solid estimate of the amount the mortgage lender is willing to offer you once you eventually find your ideal property. Remember to include that mortgage preapproval letter along with your offer, as it makes the seller more likely to take your offer seriously. No seller wants to accept an offer and feel confident that a sale is at hand, only to find out that the buyer doesn’t actually qualify for the mortgage and can’t close the deal. In that case, the seller would be starting back at the beginning, looking for a new buyer. That’s why they are liable to reject offers that don’t come with a home loan preapproval letter, and why this is a step you shouldn’t skip.
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    Mortgage Prequalifications

    Obtaining a mortgage prequalification is a less-involved process. You’ll offer your name, income, employment status and get a budget range of how much a lender is likely to give you. The lender isn’t actually verifying any of that financial information. It’s a place to start and it can give you an idea of what homes you can look at in a range where you’re liable to get a mortgage. That can be helpful to target your search. Remember, it doesn’t carry the same weight as a mortgage preapproval would.  With a mortgage preapproval, the lender has done all their due diligence to ensure that the information you’re providing is accurate.  

    How Do I Prequalify For a Home Loan? 

    Shop your around to make sure you’re getting the best mortgage deal. Compare lenders by the interest rate they offer, the terms--such as how many years it will take to pay off your mortgage and if there are any prepayment penalties. Prequalifying for a loan is not as airtight as getting a mortgage preapproval. Even though the preapproval isn’t assurance of a mortgage, pending the final review just before you sign the mortgage papers, it holds far more weight than just prequalifying. It’s a process that your real estate agent is likely to suggest since they prefer to work with a buyer who is serious. 

    Preapproval for a home loan involves a review of your finances. The lender will ask for detailed information that includes your income, employment history and employer contact information, debts you owe, bank and investment account statements, tax returns, pay stubs, identification such as your driver’s license and Social Security number and potentially other financial details. The paperwork may seem daunting, just remember that you’d eventually have to do it anyway. A home loan preapproval takes you are one step closer to making home ownership a reality.

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    Must-Haves / Deal-Breakers List

    Create A Must-Haves And Deal-Breakers Checklist 

    Take inventory of what you will need in your new home. A list of must-haves and a list of deal-breakers can help you determine the right place for you. Keeping detailed notes throughout your home search will help you make better choices for your future. A home tour checklist ensures a property is checking all the important boxes, like the number of bedrooms and baths. It can also eliminate a home from the consideration that has too many deal-breakers. 

    Remember, the checklist is a tool to keep you focused on the priorities. A home might have a few issues here and there. But many minor repairs or aesthetic issues can be changed once the home is yours. Superficial items like paint color, wallpaper or textures, popcorn ceiling, etc. can be changed. Don't let small repair items take away from the bigger picture of getting a home you will love. 

    Below are some ideas you may want to include in your checklist. Share your findings with your real estate agent to make sure they know which homes are hitting the mark and which ones are falling short:

       Number of bedrooms 

       Number of baths 

       Storage space 

       Yard/patio 

       Energy efficiency

       Neighborhood safety 

       Nearby businesses 

       Commute 

       School ratings

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    Make An Offer
    Click here for Form
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    Closing

1335 Neahkahnie St., SE
Salem, OR 97306
P: (503) 588-5674
Autumn Mist Design
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