Unlocking Homeownership: Your Essential Guide to Mortgage Pre-Approval
What's a Mortgage Pre-Approval? Think of it as a sneak peek into your home-buying power. It's when a lender gives you a conditional thumbs-up, saying, "Based on what we know about your finances, here's how much we'd be willing to lend you." They'll also give you an estimated interest rate. Why it matters: Most sellers want to see this before they'll take your offer seriously. It shows you're a serious buyer and you've got financial backing. Pre-Approval vs. Pre-Qualification Don't confuse these two! Pre-qualification is just a quick estimate based on a brief look at your finances. Pre-approval, on the other hand, is much more thorough: It involves a full mortgage application The lender does a hard credit check They'll dig deep into your income, assets, and debts Trust me, pre-approval carries much more weight when you're making an offer on a home. When Should You Get Pre-Approved? I usually recommend starting this process about 6 months to a year before you plan to buy. It gives you time to address any credit issues that might pop up. Keep in mind, these approvals typically expire after 2-3 months, so timing is key. What You'll Need Getting pre-approved isn't complicated, but you'll need to gather some documents: Proof of income: W-2s, recent pay stubs, 1099s if you're self-employed Proof of assets: Bank statements, retirement accounts, investments Good credit score: Typically, you'll need at least 620 for most conventional loans Employment verification: They'll probably call your employer Other documents: Driver's license, social security card, etc. Choosing a Lender You've got options here. You can go directly to a bank or work with a mortgage broker. Brokers can help you compare offers from different lenders, which can be really helpful if you don't want to do all the legwork yourself. After Pre-Approval Remember, pre-approval doesn't guarantee you'll get the loan. Things can change if your financial situation shifts. My advice? Once you're pre-approved, avoid making big purchases, changing jobs, or doing anything that could impact your finances. And here's a pro tip: You're not obligated to get your loan through the lender that pre-approved you. Feel free to shop around for the best rates and terms. Getting pre-approved is a big step towards homeownership. It gives you a clear picture of what you can afford and shows sellers you mean business. If you have any questions about the process, I'm here to help!
The ONE THING people forget to change when moving into a home...
When you buy a house, there are several key things you should consider changing or updating as the new owner to ensure your safety, privacy, and comfort. Here's a checklist: Locks and Security Codes: Change all the exterior locks on your house. You never know who might have a copy of the keys from the previous owner. This includes door locks, garage codes, and gate codes. Consider upgrading to smart locks for enhanced security. Update Address Information: Notify relevant parties of your address change. This includes your employer, bank, utility providers, insurance companies, and subscription services. Smoke Detectors and Carbon Monoxide Detectors: Ensure that all smoke detectors and carbon monoxide detectors are working correctly. Replace batteries and consider upgrading units if they are old or malfunctioning. Utilities: Set up your utilities in your name if the previous owner hasn't already transferred them. This includes electricity, water, gas, internet, and any other services you may need. Deep Clean: Before moving in, it's advisable to do a deep clean of the entire house. This could range from cleaning carpets and floors to ensuring the kitchen and bathrooms are sanitized. Consider hiring professional cleaners for a thorough job. Pest Control: Have a professional pest inspection and treatment done to ensure there are no hidden surprises. Even if you don't see signs of pests, it's good to start with prevention. Change Air Filters: Replace the HVAC system's air filters to improve air quality and system efficiency. It's also a good time to service your HVAC system if the previous owner hasn't done so recently. Emergency Preparedness: Locate and inspect the main water shut-off valve, the circuit breaker box, and any gas shut-off valves. Knowing how to quickly access and operate these can be crucial in an emergency. Repaint: Repainting rooms or the exterior can not only personalize your new home but also give it a fresh, clean look. It's easier to paint before you move in all your furniture. Update Mailing Address: Change your mailing address with the postal service to ensure you receive your mail at your new home. Review and Update Insurance: Make sure your home insurance is up to date and covers everything you need for your new home. This might include updating your policy to reflect the value of the property and your possessions. Inspect and Repair: Conduct a thorough inspection of the home and undertake any necessary repairs. This can range from fixing leaky faucets to addressing any electrical issues. Landscaping: Assess the landscaping and outdoor areas. You might need to trim overgrown trees or bushes, especially if they pose a risk to your property. Change Emergency Contact Information: Update your home's security system with your contact information and any emergency contacts. And the ONE THING you should change when moving into a home is all the TOILET SEATS!
Halloween is over but WATCH OUT FOR SCARY FLIPS!
Halloween season is a perfect time to talk about houses on the market that LOOK good but are actually SCARY FLIPS. Recently I was helping a friend with a home purchase and this home was a nightmare waiting to happen. It was built in 1954 but the flipper only focused on the pretty things a buyer would see. During our inspection period we found: 1️⃣ The attic no longer has insulation (seller said they would not install insulation) and electrical junction boxes were left exposed. 2️⃣ The central HVAC ducting was sealed off and the flipper put in 9 mini splits with one for each room in the house. 3️⃣ A sub panel was added to the original 150amp electrical panel to supply power to all the mini splits but didn’t allow for enough headroom for the water heater or dryer. An electrician quoted $20k to rewire the home and to upgrade the panel with the correct permitting. 4️⃣ The home originally had 2 bathrooms, but the flipper added 3 more bathrooms (without a permit) and did not update or replace the cast iron sewer line. 5️⃣ The flipper added an extension (again unpermitted) that brought the roofline dangerously close to the electrical line supplying power to the home. 6️⃣ The flipper pulled the back fence in 15 feet to allow for people to park behind the house but this was just raw dirt and was against Phoenix city code. 7️⃣ We could see exposed drywall between the gaps of the shower panels in all 5 bathrooms which would have guaranteed a mold issue. The agent (who was related to the seller) claimed they intentionally don’t make their flips perfect so a buyer can come back with a list of requested fixes. We passed on the house. Long story short, watch out for scary flips out there! If you or someone you know has a real estate need, let's connect! 602-300-7153 Clifford
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