Buying a Home in Glassell Park? Get Pre-Approved for that Loan
Tracy King Realty
Washington Homes, Tracy King
Becoming pre-approved is essential when purchasing a home in Glassell Park. It saves time and provides the seller with security knowing that you already have a loan.
Located in Northeast Los Angeles, Glassell Park real estate is an emerging market and an up and coming area just south of popular Eagle Rock and west of another emerging market, Highland Park. Homes in Glassell Park are in demand and there’s not always a high inventory of homes for sale there so when it comes to buying a home, you want every advantage you can get. Before you even start open housing, it’s a good idea to get pre-approved for a loan and it’s a better idea to learn the difference between being “pre-approved” and “pre-qualified”.
Before you purchase a home you must establish your budget by organizing your finances. Once your budget is drawn, you can begin to search for Glassell Park homes that fall into your price range. Before you place a bid you should apply to be pre-qualified or pre-approved for a loan. Buyers who are pre-approved for a loan are at an advantage because the sellers know, from the beginning, that they have the means to close the sale of the home.
The process of becoming pre-qualified for a loan is simpler than becoming pre-approved. Your loan officer will need to collect the following information: your annual income, your assets and your current debt. He or she will analyze your credit profile and choose the most efficient loan program for your budget. Once your loan program is selected, your loan officer will produce a pre-qualification letter, which will provide an estimate of the money you are allowed to borrow. This lump sum is not guaranteed, but it will provide the seller with valuable information concerning what price you are able to afford.
If you want the assurance of being pre-approved, additional paperwork is required. First, you need to complete a mortgage application to be submitted to your loan officer. In addition to the application you must also submit financial status forms, employment documentation, credit card records and bank statements. Utilizing this slue of information, your loan officer will determine your mortgage capability and locate an appropriate lender. Once the lender approves your mortgage application, they will provide you with a pre-approval letter stating the amount of money you are granted for the purchase of a home.
Being pre-approved for a loan will put you ahead of any buyers who are only pre-qualified for a loan, but you are also susceptible of being audited by your lender. Audits are generally requested when a major shift occurs in your financial situation. If you loose your job or encounter a heightened interest rate, your lender will need to revaluate your mortgage application and re-determine the amount of your pre-approval letter.
While the process of purchasing a home - starting from the obviously fun activity of going to open houses - can be enjoyable, if you’re serious about competing against other buyers to land that home, home buying is serious business. Buyers need to be smart, savvy and prepared.
With homes throughout Northeast Los Angeles, in neighborhoods like Mt. Washington, Eagle Rock, Highland Park and, now, Glassell Park, becoming hot real estate markets, getting pre-approved before house hunting is vital. You - and the seller - knowing what you can afford will assure that neither of you are wasting precious time in your goal of buying a home in beautiful Glassell Park.
, Washington Homes