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| Pre-qualified? What is that? |
Pre-qualified? What is that?
You have been looking at homes through a Multiple Listing
Service (MLS) link or a Homes magazine and you want to start
looking at homes. You call your choice of Real Estate Agent and
during the conversation the agent says, "Are you pre-qualified?"
Get pre-qualified?
Before you get ready to buy a home you need to see a lender and
start the loan application process. If you are not sure who to
contact, talk to your real estate professional for
recommendations. I personally like my clients to talk to a loan
representative that works directly for a Mortgage Company.
Why do You need to get pre-qualified |
first?
Most Real Estate agents do not try to do the work of a lender.
True professionals usually recognize the need to rely on other
true professionals to bring your transaction to a successful
close. The Real Estate agent does not want to show properties
without the buyer completing a tri-merge credit check through a
lender. The cost of the credit report is normally under $25. The
credit report will show your credit history and include three
FICO scores. It is the middle score that is normally used by the
lender. You will also need to complete a loan application. With
all the loan programs available, it is up to the loan
representative to explain the different type of |
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loans that may
be available to you. It is at this point that you will know how
much home you can purchase. Be sure you get a "good faith
estimate" which shows the costs of the loan and your approximate
monthly payment from the lender. This will help your agent
structure the costs and financing of your Residential Purchase
Contract.
If you are in the state of Arizona your lender will also
complete the Arizona Association of Realtors form called the
"Loan Status Report" (LSR) which must accompany the Residential
Purchase Agreement. The Purchase agreement is the most important
document, but the LSR is the one item that allows the procedure
to continue to an acceptance or |
a counteroffer. Without the
completed LSR it is a total rejection by the Seller. The lender
prepares the LSR based on your application and credit report.
I hope you now see the importance of getting pre-qualified
before you start looking at properties.
About the author:
Barry has been in the Real Estate Business for over 26 years. He
holds the CRS, GRI, and e-Pro designation with the National
Association of Realtors. He is the Broker for his family owned
business. Tucson
Arizona Real Estate - CENTURY 21 Ability Realty - Barry
Fotheringham - Search 1000's of listings and find valuable
information on Tucson!
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