Use and distribution of
this article is authorized as long as the author's information
and copyright is included.
Author: Barry Fotheringham
Pre-qualified? What is that?
You have been looking at homes through a Multiple Listing Service (MLS)
link or a Homes magazine and you want to start looking at homes. You
call your choice of Real Estate Agent and during the conversation the
agent says, "Are you pre-qualified?"
Before you get ready to buy a home you need to see a lender and start
the loan application process. If you are not sure who to contact, talk
to your real estate professional for recommendations. I personally
like my clients to talk to a loan representative that works directly
for a Mortgage Company.
Why do You need to get pre-qualified first?
Most Real Estate agents do not try to do the work of a lender. True
professionals usually recognize the need to rely on other true professionals
to bring your transaction to a successful close. The Real Estate agent
does not want to show properties without the buyer completing a tri-merge
credit check through a lender. The cost of the credit report is normally
under $25. The credit report will show your credit history and include
three FICO scores. It is the middle score that is normally used by
the lender. You will also need to complete a loan application. With
all the loan programs available, it is up to the loan representative
to explain the different type of loans that may be available to you.
It is at this point that you will know how much home you can purchase.
Be sure you get a "good
faith estimate" which
shows the costs of the loan and your approximate monthly payment from
the lender. This will help your agent structure the costs and financing
of your Residential Purchase Contract.
If you are in the state of Arizona your lender will also complete the
Arizona Association of REALTORS® form called the "Loan
Status Report" (LSR) which must accompany the Residential Purchase
Agreement. The Purchase agreement is the most important document, but
the LSR is the one item that allows the procedure to continue to an
acceptance or a counteroffer. Without the completed LSR it is a total
rejection by the Seller. The lender prepares the LSR based on your
application and credit report.
I hope you now see the importance of getting pre-qualified before you
start looking at properties.
About the author:
Barry has been in the Real Estate Business for over 26 years. He holds
the CRS, GRI, and e-Pro designation with the National Association of
REALTORS®. He is the Broker for his family owned business.
Tucson Real Estate CENTURY
21 Ability Realty - Barry Fotheringham - Search 1000's of listings
and find valuable information on Tucson!
For Listings (MLS) | View
Our Listings | New
Homes | Sign-Up
For Automated E-mail Listings | Mortgage
Payment Calculator | Relocating?
Our Agents | Our
Internet Partners 2,
A, B, C | Site Map
AK | AZ
| AR | CA
| CO | CT
| DC | DE
| FL | GA
| HI | ID
| IL | IN
| IA | KS
| KY | LA
| ME | MD
| MA | MI
| MN | MS
| MO | MT
| NE | NV
| NH | NJ
| NM | NY
| NC | ND
| OH | OK
| OR | PA
| RI | SC
| SD | TN
| TX | UT
| VT | VA
| WA | WV
| WI | WY|