If you’re thinking about buying a home in Metro Detroit MI, step #1 – Home Buying Mortgage Pre-Approval and how to save MONEY and the right lender.
Step #1 ~ Do You Homework to find the Best Lender and Program for You
💥 Important 💥 We’ve seen many changes lately with high mortgage rates and now lenders are designing special programs to help you and compete for your business… Great News!
I recommend keeping up to date weekly on mortgage rates and how to predict where they are heading. This week…” The Yo-Yo of Mortgage Rates and How to Plan”
This week’s Option for Discounted Mortgage Rates
- Independent Banks are using investors to replenish their cash for Mortgage Loans. Because they are not using The Fed’s money, they can set their own rates & points for less.
- Have a discussion with the lender regarding a 5 or 7-year arm. Rates are lower and you pay less in points as well. You can refinance when the rates go down.
- Different banks are offering special programs and you need to weigh out all your options. Be careful, you need to shop around to see if the programs are a great deal or if you would be better off with an independent lender.
- Some of the Big Box Banks don’t have private investors and use the Fed’s money only. Some have started a new program where the Seller can buy down the rate for the Buyer. I have an example below of what that would look like. The example, the seller’s concession would be $8,916.00. That’s the amount the buyer would save over the 2 years. Keep in mind, I’m building a list of discount lenders and we can share it with the buyer of your home. You can make it a Win ~ Win because it helps build value, and keeps the buyer focused on your home and not your competition.
Step #2 ~ Do You Homework to find the Best Lender and Program for You
💥 Important 💥 We’ve seen many changes lately with high mortgage rates and now lenders are designing special programs to help you and compete for your business… Great News!
✅ Do ~ Find out your FICA Score not your credit score. Check with your banking institution, they usually provide free FICA Scores. 🛑 Don’t give a lender your SS# to pull credit until you found the program that works best for you.
Important Do’s and Don’ts
. ✅ Do ~ Pull a free credit report from your bank or Free Credit Agency. ✅ Do ~ Call around and find independent banks that are setting their own rates. Check with your Credit Union as well. ✅ Give the lenders your FICA score to get quotes. 🛑 DON’T ~give out your Social Security Number as they will pull your credit. Wait until you select a lender and a program that works best for you then make an application. You’re getting rough quotes for now based on the FICA score you obtained, it doesn’t have to be exact for now. You’re in the weeding-out phase of your search. ✅ DO ~ contact me with any questions you may have via my cell at 248-343-2459
🙋♀️~ Not sure where to start?
Get Your Do’s and Don’ts during the loan process. I do have lenders I’ve pre-screened based on low fees, special programs, rates, and best service. Let’s connect and discuss your options. You can also check with your Bank or Credit Union. Just don’t give out your SS# so they can’t pull credit until you’re ready.
Have a Question ~ Tech Support?
Home Buying Mortgage Pre-Approval
Now you’ve worked through steps 1 and 2 and you have selected a lender. One of the first steps in your home-buying journey is getting pre-approved. To understand why it’s such an important step, you need to understand what pre-approval is and what it does for you. Business Insider explains:
“In a preapproval [sic], the lender tells you which types of loans you may be eligible to take out, how much you may be approved to borrow, and what your rate could be.”
Basically, pre-approval gives you critical information about the home-buying process that’ll help you understand your options and what you may be able to borrow.
How does it work?
As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.
Strong Pre-Approval Helps Show You’re a Serious Buyer
Another added benefit is pre-approval can help a seller feel more confident in your offer because it shows you’re serious about buying their house and willing to negotiate. A recent article from Forbes notes:
“From the seller’s perspective, a preapproval [sic] letter from a reputable local lender often can make the difference between accepting and rejecting an offer.”
Strong Pre-Approval allows aggressive Negotiation with Seller’s
This goes to show, even though you may not face the intense bidding wars you saw if you tried to buy during the pandemic, pre-approval is still an important part of making a strong offer. In fact, Christy Bieber, Personal Finance Writer at The Motley Fool explains it may be the most important part of making an offer:
“Pre-approval maximizes the chances you’ll be able to actually close the deal – and sellers want to see that.
The fact that a pre-approval gives you a better chance of getting your offer accepted is undoubtedly the most important reason to complete this step . . .”
If you find this information useful, like it and share it with your friends and family.
Bottom Line: Home Buying Mortgage Pre-Approval
Getting pre-approved is an important first step toward buying a home. It lets you know what you can borrow and shows sellers you’re serious about purchasing their home.
Simplifying Real Estate Through Education
As we move forward, it’s been challenging as we navigated through all the changes. Putting your dream of a new home on HOLD shouldn’t be one of them. Now more than ever, knowledge will be your power. Know the Market You’re In and your Negotiation Power. Check out Categories for additional updates regarding the Market | Buying | Selling
If You Need To Sell 1st…
Keep Buyer Focused on your Property vs the competition
With the increase in mortgage rates is stalling the housing market and in some cases home prices. I’ve secured independent banks and investors that are willing to compete for your business. We can offer the buyer a discounted mortgage rate to purchase your home vs your competition. We will offer more value so they write a good offer. I sold homes for top dollar during the Great Recession, so I dusted off my playbook. It’s time to play ball.
Marketing Your Home
No 2 homes are alike, and agents need to 🛑 marketing ONE size fits all. We no longer have an exposure problem (internet). Your home is buried on public home search internet sites. The only way to compete on those platforms is the price. If you want more money, you need to apply Influence. Separate your home from the competition, so the Buyer sees value. Keeping them focused on your property and not getting lost in homes’ inaccurate data on public internet sites is necessary. Having digital omnipresence on serval platforms is your key to success. Remember MORE INFLUENCE = MORE 💰. We have details on how you can utilize High Tech Marketing and Win!
Have Questions?
If you have any questions, contact us: Chatbot 🤖 at the bottom. Contact me by Email 📩 or my Cell 📲 @ 248-343-2459. Would you mind sharing your thoughts below or what future article you would like to see? Your opinion is important to us…. this site is for you.🤩 To Keep up to date request our 🏡 Chat Newsletter or Follow us on Facebook, Instagram, or YouTube.
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