Mortgage Info
Tom Christensen or Michael Doherty Susan Mancuso Aufiero Rachel Lewis
Arthur Dimella
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Pre-Qualification Vs. Pre-Approval The first tool you need in order to purchase a home in today's very competitive market is a pre-qualification letter or better yet, a pre-approval letter from a reputable financial institution. This tool is one of your strongest means to convey to a homeowner that you are a serious buyer and that you are financially prepared to act on the offer you submit to them. When you are faced with multiple offers from other buyers on the home you wish to purchase, you want to be certain that your Pre-approval letter will help to convince the seller to accept your offer over the others. Many institutions will tell you that you are getting a pre-approval letter when in fact you are receiving a pre-qualification letter. A pre-qualification letter shows that your credit report has been run and that based on what you have verbally told the financial person about your income and assets, they have pre-qualified you for a mortgage. They may call it a pre-approval but it is looked at as holding less strength by listing agents. In a very hot market with lots of competition, you may want to obtain a genuine pre-approval letter. This is a letter that states that your credit has been run as well as your income and assets have been verified through issuance of W-2s, paychecks, bank statements etc. The bank has received written materials from you that verify what you have verbally told them. The reason why it is important to have your income and assets verified in this manner is because there are times when a buyer will mistakenly include income that the bank will not qualify as annual income; ie: a purchaser may count a bonus as annual income and yet since it may vary year to year the financial institution will not utilize the full bonus in their calculation. You don't want to be in a situation where you find out after you found the house of your dreams that you don't qualify for the mortgage you need. NOTE: If you currently own a home and will be selling it to purchase your new home, remember to discuss with your financial person how to handle this situation. If you do not want to list your current home until you have located a home you wish to purchase, you may run into problems. Most homeowners will not accept an offer contingent on the sale of the buyers current home, especially if the buyer does not have an accepted offer on their current house and therefore are not about to go to contract. In an active market where there are multiple offers often homeowners do not have to get tied up with buyers who may have problems selling their home. Certainly you can find financial people on your own or through friends or relatives who may have used the services of someone they like. But I have also listed a few financial people and their institutions who I have had experience with closing deals here in Westchester County and think you will find to be very knowledgeble in their fields. |
