Carlsbad Financial Tips and Advice

Although finding the home of your dreams may be easy, financing your purchase may not be. Create a payment plan for your future property from the beginning, so you don’t find yourself with the perfect home and no way to afford it. Don’t let a great home slip through your fingers; get pre-qualified and pre-approved before you begin shopping.

What is pre-qualification?

Pre-qualification is the first step in buying any property. During pre-qualification, you provide a lender with information regarding your credit history, assets and debts. This step lets both you and the lender know how much you can afford to spend for your new home. Although pre-qualification is helpful, remember that it is not binding. You can still be denied a loan, even after you are pre-qualified.

What is pre-approval?

Similar to pre-qualification, pre-approval also examines your assets, debts and credit record, but, unlike pre-qualification, this process requires verification of the amounts you provide with information such as bank statements, pay stubs and W-2 forms.

Getting pre-approved means you are guaranteed a certain loan amount, as long as you find an acceptable property within your price range.

How can I get the best deal?

As with any significant investment, purchasing a home and finding the best financing requires serious comparison shopping. Remember, over the course of your mortgage, you will end up paying far more for your financing than you do for your home. Discuss your financing options with your real estate professional. Because agents and lenders often work closely together, he or she may be able to help you obtain a good rate.

A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®