Buying Real Estate in the Napa Valley
Once you have an idea of the type and size home you want and the area you'd like to look in, you need to be pre-approved by a lender. By doing this before looking for a home you'll save yourself time, energy and frustration because pre-qualification can:
Determine How Much Home You Can Afford
Pre-approval helps you avoid buying less home than you can afford or being disappointed if you don't qualify for as much as you had hoped.
Shows What Your Total Investment Will Be
You'll know approximately how much money you'll need for down payment and closing costs.
Lets You Know What Your Monthly Payment Will Be
You'll have a close estimate of what your monthly principal, interest, taxes and insurance (PITI) will be.
Identify the Loan Programs You Can Qualify For
With the wide variety of loan programs available, it is important to know which types you qualify for and which will best suit your needs.
Strengthens Your Offer
Sellers are more inclined to accept realistic offers when they know that you have taken the time to be interviewed by a lender and can probably qualify for the loan.
At this point your lender can also help you determine alternatives and strategies that could help you buy the home of your dreams. Some examples include:
- Special First Time Homebuyer Programs
- Co-Mortgage Financing
- Debt Consolidation Counseling
In order to be pre-approved, the lender will need to know the following:
- Your Employment History and Income
- Your Monthly Debts and Obligations
- The Amount and Source of Cash Available for Down Payment and Closing Costs
When you are pre-approved by a Mortgage Company, you'll receive a FREE Pre-Approval Certificate to give to your real estate agent. The seller may be more likely to accept your contract because they know you are qualified to buy their home.
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