Homebuyers sometimes really do not know the steps needed in financing their purchase.
The steps are:
Qualification, Pre-approval, Approval, Lock and Appraisal
Qualification or Pre-Qualification is a lenders opinion that your income, assets, and debts qualify you for a loan of a certain amount.
It is an opinion and does not take your credit into account and no one is committed. Lenders provide for free of charge and are interested that you will become a borrower.
Pre-Approval is a conditional commitment by a lender to make a loan before a specific property is found. The lender will verify information you provide and check your credit. The lenders commitment is always conditional but not yet disclosed.
Approval is a commitment by a lender to make a loan. A property is identified and the details of the loan are detailed. The type of loan, down payment and type of documentation.
Approval letters contain conditions which are a check list of details that must be completed before final documentation.
A lock is a commitment by the lender to a specified rate and points. Usually the lender lock at borrowers request and view the borrower as being committed.
An appraisal is how much a property is worth based on recent transactions of similar properties in the same market area with allowances for differences in properties. Mortgage lenders base the maximum amount they lend on any property on the lower of the purchase price or the appraisal. If the appraisal comes in lower than the purchase price the Buyer will have to make up the difference or the seller may reduce the price. In a sellers market the Buyer may be forced to make up the difference.
Author:Kathy Toonder Phone: 941-544-7270 Dated: May 20th 2017 Views: 2,501 About Kathy: I enjoy walking the warm sandy beaches, swimming and watching the magnificent sunsets on Florida’s...
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I enjoy walking the warm sandy beaches, swimming and watching the magnificent sunsets on Florida’s Gulf Coast. Thirty years ago I came from Michigan to the Sarasota area to enjoy the beaches of the Sunshine State. The “Beach Communities” Longboat Key, Lido Key, Siesta Key and Casey Key are what draw everyone to make Sarasota their home!
Sarasota the “Cultural Capital” of Florida attracts homeowners that want more than just a beach experience. Sarasota and Manatee communities with the growth of new housing maintain their elegant but laid back style. It is a great place to make it your home to be able to enjoy lush natural environment and the amenities of a modern city.
I became a home owne r in Lakewood Ranch an award winning 17,500 acre site that provides a beautiful master planned, maintained and golf community. Get the picture: blue waters, white sand, plenty of sun, blue skies, fabulous food, casual outdoor dining, amazing fishing, play golf, boat races, music and art festivals….
My focus is to best understand the goals and visions of my clients, ensuring all decisions are made with a wealth of information and the necessary tools for a successful, rewarding experience.
I have found my “Slice of Heaven” I look forward to you finding yours!
Are you considering buying or selling a property? Are you wondering if
"Kathy was everything we wanted and needed in an agent as 1st time home buyers. She went above and beyond to ensure that we had everything explained to us, because we did have a lot of questions. An amazing agent and better person! -Megan & Justin"