Many lenders today offer a service that is referred to as a pre-approval. Unlike the typical mortgage loan approval, this service is provided to a potential Dearborn Michigan area real estate home buyer before he or she agrees to purchase a certain Dearborn area property. An abbreviated application is taken, and the mortgage lender provides a document stating the amount of money that the buyer will be able to borrow when making a home purchase. The pre-approval also states that it is conditional pending the appraisal of the actual property being purchased and written proof of the buyer’s employment and income. Here are the benefits to both the buyer and seller.
BUYER’S BENEFITS: With a pre-approval, the Dearborn Michigan area home buyer knows exactly what price range he or she can and/or cannot afford. This knowledge in advance prevents a person from falling in love with a home that is not within his or her financial grasp. After looking at more expensive houses, it can be a real disappointment to begin looking at lesser properties that are affordable. The pre-approval allows a Dearborn Michigan home buyer to begin in and stay in the correct price range when shopping.
SELLER’S BENEFITS: Whenever an offer is made, it is usually dependent upon the buyer obtaining the necessary loan amount from a lender in order to complete the home purchase. It may take a few weeks or a month to find out if the buyer has been fully approved to purchase for a Dearborn area home. During this time, the Dearborn house is off the market and not available to other would-be buyers. If the buyer is unable to qualify for adequate financing, the Dearborn area home seller loses the time that the house was off the market and must begin again to attract another buyer. If the buyer has been pre-approved, however, the seller knows that this is a buyer who is indeed capable of completing the purchase.
If you are in the market to Buy a home or if you are planning to Sell a home or real estate in Dearborn, Dearborn Heights, Garden City, Westland, Redford, Livonia, Plymouth, Canton, Northville, Novi, Farmington, Allen Park, Taylor or any one of the other Detroit Michigan west side suburbs, Contact Steve Hatfield today.
All Dearborn and Dearborn Heights Michigan home buyers want the lowest mortgage rates possible when applying for a home loan, because it directly translates to a smaller mortgage payment each month. And who doesn’t want to shrink their monthly expenses?
But how does one obtain a low rate on a mortgage loan and, for that matter, why is it important in the first place? These are the subjects we will discuss in this tutorial for first-time home buyers.
How Your Credit Score Relates
When you apply for a home loan, you want to be sure that your lender will request your credit reports and scores from all three of the reporting companies (Experian, Equifax and TransUnion). Lenders also reserve the best rates for borrowers who fall into a certain credit category.
What score you need to qualify for this category will vary from one lender to another, but it’s safe to say that the better (higher) your credit score, the lower the mortgage rate you’ll receive. This in turn translates into a lower payment each month, which is the whole point to all of this.
Here’s something not many home buyers realize. Over the last few years, the score needed to qualify for the best Detroit area mortgage rates on a loan has risen. This is largely due to tougher restrictions on lending institutions (as a result of the subprime loan crisis of 2007 – 2008). Read more…
Over the years I have found that many buyers did not know that they only need to work with one Realtor to show them homes…. no matter what company or real estate agent has the home listed for sale.
So, the answer is…
You only need 1 Real estate agent to show you homes!
Here’s how it works…
When I provide you with a list of Dearborn area homes or a list of homes in Livonia, Canton, Plymouth, Allen Park or any other west side suburb that you are looking in, the list will have homes that are for sale with Re/Max, Real Estate One, Remerica, Coldwell Banker, Weichert, Century 21 and many others. I can show you any of these homes!
You just need to let me know which homes you would like to see and then I will schedule appointments for us (you and I) to walk through the houses or condominiums.
When you find a home that you would like to purchase, I can help you make that purchase (write up all the paperwork) and represent you as your “buyer’s agent” irregardless of what company has that home/condo listed for sale.
This is great news for you because it allows you select the best and most qualified Realtor to represent YOU as your buyer’s agent while still having all the listed available properties (from any company) to choose from to look at and purchase.
A few of the many advantages of working with just 1 Real Estate Agent…
You get to choose the best and most qualified Realtor to represent your interests, advise and guide you through today’s complex home purchase process. This is VERY IMPORTANT because all agents are not equally qualified in experience, knowledge and negotiating skills.
Your Realtor gets to know what you like and don’t like so if they run across a home that appears to be what you are looking for, chances are they will remember and tell you about it.
If your Realtor knows you are loyal to him/her (remember, they only get paid when you buy a home through him/her) you’ll probably get better service.
You build a relationship with that Realtor, and it generally makes the whole process much more pleasant.
Purchasing a home is no longer a simple process it once was. In fact, not only has it become very complex but it is constantly changing so the agent you work with needs to be on top of these changes. The bottom line for all buyers, IT IS IN YOUR BEST INTEREST to only work with 1 Realtor, but be sure you ONLY work with a highly qualified real estate agent that can effectively and efficiently help you navigate today’s complex home buying processes.
If you are in the market to Buy a home or if you are planning to Sell a home or real estate in Dearborn, Dearborn Heights, Garden City, Westland, Redford, Livonia, Plymouth, Canton, Northville, Novi, Farmington, Allen Park, Taylor or any other Detroit Michigan west side suburb, Contact Steve Hatfield today.
Visit my web site at: www.DearbornHomes.com for in-depth information about Buying or Selling a home or Real Estate in the Dearborn area or the west side Detroit suburbs.
Beginning your Dearborn Michigan real estate and home search can be a somewhat disconcerting task. Perhaps the biggest question many first time Dearborn area homebuyers have is where to begin the process. Some people begin by looking at real estate magazines or websites, while others call real estate agents right off the bat. The process varies.
So, what is the best way to begin your quest for a new Dearborn area home? In truth, any way you begin the process is a good way, because the most important thing is to get started. After all, you will learn a lot as you go. But there are some things to keep in mind:
Do the Proper Research
Buying real estate in the Dearborn Michigan area can be an overwhelming experience for the first-time buyer. But you can make the process much easier simply by understanding it. Start with the lingo. By learning the terminology associated with home buying and mortgage, you will make smarter decisions along the way.
Set Your Budget
The best way to begin looking for a home is to first sit down with an experienced mortgage lender like Sam Reda at Shore Mortgage (313-522-4900) to determine how a high a mortgage you can afford and be approved for. Remember, there is a difference between the loan amount you can be approved for and the amount you can actually afford. So in the end, only you can determine your home buying budget — not a mortgage lender.
When dealing with your mortgage lender you will want to provide him or her with an understanding of what mortgage payment you are comfortable making so they can give you a sense of the size of the mortgage that equates to, based on your credit, income and other factors.
Taking this step first will help “frame” your home search so you are only looking at homes within your budget range. Many first time homebuyers fail to take this step and therefore waste time and energy looking at homes that are well above their budget.
You can find plenty of websites that offer mortgage calculators, and these tools are a good place to start when determining your budget. Just keep in mind that the one variable you can never predict in advance is the interest rate. Only by speaking to a lender can you get a full mortgage quote that includes the interest rate (based on your credit history).
Get Pre-Approved for a Mortgage
Another reason you may wish to start with speaking to a mortgage lender like Sam Reda at Shore Mortgage is so your real estate agent can be prepared to show a pre-approval letter to the seller when it’s time to make an offer. This gives them the confidence that you can buy their home, which is especially important for homes where more than one buyer makes an offer (i.e. a seller’s market). Do not confuse pre-qualification with pre-approval. Pre-qual is an informal process in which the lender tells you how much of a mortgage you might qualify for. Pre-approval, on the other hand, is a more formal review of your finances and is likely to reflect the actual loan amount the lenders extends to you. In other words, the person selling the home will pay more attention to the pre-approval letter.
Though there is no wrong way to begin a search for a new home, meeting with a mortgage lender first may be the best way to begin your search and find your dream home. Just remember to always keep an open mind when visiting each property and envision the possibilities. You must also stay realistic about your finances and do your best not to over-extend yourself by purchasing a home beyond your means.
Citation Note: The original version of this article was written by Brandon Cornett. Brandon is the publisher of the Home Buying Institute, which includes one of the largest libraries of credit advice for home buyers.
A Buyer Representation Agreement is a legal document that formalizes your working relationship with a particular buyer’s representative, detailing what services you are entitled to and what your buyer’s rep expects from you in return. While the language used in the document is formal, Dearborn area homebuyers should view it as an important and helpful tool for clarifying expectations, developing mutual loyalty, and most importantly, elevating the services you will receive from your Dearborn Michigan real estate agent.
Receive a higher level of service. If you’ve formalized an agency relationship with a buyer’s rep, you can expect to be treated like a client instead of a customer. What’s the difference? Clients are entitled to superior services, relative to customers. While the details vary from state to state, and from one buyer’s agent to another, you can generally assume that being a client means that you’ve formed a fiduciary, or agency, relationship with your buyer’s rep. Read more…
The spring real estate market in Dearborn and Dearborn Heights is starting to heat up. If you are a first time home buyer, you’ll need as much information as you can get to before you start your home search and ultimately make a home purchase.
I am sure you will find this short video entitled “Shopping For Your Home” that was produced by HUD to be a great help in understanding the various steps involved in finding and purchasing your dream home.
If you are in the market to Buy a home or if you are planning to Sell a home or real estate in Dearborn, Dearborn Heights, Garden City, Westland, Redford, Livonia, Plymouth, Canton, Northville, Novi, Farmington, Allen Park, Taylor or any other west side Detroit Michigan suburb. Contact Steve Hatfield today.
Visit my web site at: www.DearbornHomes.com for in-depth information about Buying or Selling a home or Real Estate in the Dearborn area or the west side Detroit suburbs.
This video was produced by HUD – U.S. Department of Housing and Urban Development
proof of the buyer’s employment and income. Here are the benefits to both the buyer and seller.
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