When you submit an offer to buy, banks and private sellers alike want to see if you are qualified to buy the home. A “pre-qualified” letter if often requested to be submitted with the offer to purchase. Getting pre-qualified for a loan will also determine the amount of loan an applicant is qualified for considering the debt to income ratio and purchase ability of the applicant. It is best to know how much home you can afford before shopping for the home.
Pre-qualification is normally determined by a loan officer. After interviewing you, the loan officer determines the potential loan amount for which you may be approved. The loan officer does not issue loan approval, therefore, pre-qualification is not a commitment to lend. After the loan officer determines that you pre-qualify, he/she then issues a pre-qualification letter. The pre-qualification letter is used when you make an offer on a property. The pre-qualification letter informs the seller that your financial situation has been reviewed by a professional, and you will likely be approved for a loan to purchase the home.
Pre-qualification is normally determined by a loan officer. After interviewing you, the loan officer determines the potential loan amount for which you may be approved. The loan officer does not issue loan approval, therefore, pre-qualification is not a commitment to lend. After the loan officer determines that you pre-qualify, he/she then issues a pre-qualification letter. The pre-qualification letter is used when you make an offer on a property. The pre-qualification letter informs the seller that your financial situation has been reviewed by a professional, and you will likely be approved for a loan to purchase the home.
Pre-approval is a step above pre-qualification. Pre-approval involves verifying your credit, down payment, employment history, tax returns etc. Your loan application is submitted to a lender's underwriter, and a decision is made regarding your loan application. When your loan is pre-approved, you receive a pre-approval certificate. Getting your loan pre-approved allows you to close very quickly when you do find a home. Pre-approval can also help you negotiate a better price with the seller.
How can I prequalify myself?
For a quick prequalification use this formula:
Monthly Gross Income :______________ x 28% =___________ - FHA Approved Housing Payment
(in monthly gross income include any child support/alimony/social security ect….)
Housing Payment__________________________
Min Loan Payments________________________
Min. Credit Card Pymts_____________________ ___________________
Alimony & Student Loan Pymts______________ Total Monthly Debt
Car Payments_____________________________
Monthly Gross Income:____________________ x 36%=_________ - FHA Approved Total Debt
GAYLE BEYER – BROKER
WELCOME CENTER REALTY
800-375-5080
WWW.FLA777.COM
TREASURE COAST / PORT ST LUCIE / FLORIDA
WELCOME CENTER REALTY
800-375-5080
WWW.FLA777.COM
TREASURE COAST / PORT ST LUCIE / FLORIDA
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