With the summer home buying season heating up, we are here to help with some of your top Google searches about buying a home. We looked at the data from Google Trends to find out your top questions about homeownership.
Author: lmills
Pre-Qualification vs. Pre-Approval: What’s the difference?
Looking at homes without knowing how much you can afford can be a waste of time for you and your realtor.
“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”
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The same wise sentiment can apply to purchasing a home – why start house hunting without putting in the time to get pre-approved so you can know your budget?
Armed with misconceptions, many home buyers mistakenly think that pre-qualification and pre-approval for a mortgage are the same thing. In reality, there is a big difference between these two terms. Understanding the distinction could be the difference between having your offer on a house accepted or rejected.
PRE-QUALIFICATION
During a pre-qualification, you provide your lender with your overall financial picture (including your income, asset, and debt information). After evaluating this information, your loan officer can give you a good estimate of what you qualify for. A pre-qualification does not include verifying the information you provide, nor an analysis of your credit report. Because of this, a pre-qualified buyer does not carry the same weight as a pre-approved buyer when making an offer on home.
PRE-APPROVAL
Pre-Approval is when you complete an official loan application and provide your loan officer with the necessary information to document and verify your income, assets, and debts. Your lender will pull your credit report and look over documents such as bank statements and W-2s. From this analysis, the loan officer can tell you the specific amount for which you are approved, and which loan programs might be the best fit for your unique financial situation.
| Pre-Qualification | Pre-Approval | |
| Based on Estimates | ||
| Based on documented information | ||
| Income, Assets, and Verified Credit | ||
| Written conditional commitment | ||
| Shows serious intentions to buy | ||
| Gives strongest negotiating power |
Bottom Line?
A pre-approval carries a stronger weight with sellers and puts you in the best negotiating position possible.
Want to get pre-approved before looking at homes? Start by Contacting Me, or Apply Now.
Want to get pre-approved before looking at homes? Find you loan officer to get started, or Apply Now.
Want to get pre-approved before looking at homes? Drop us a line, or Apply Now with our branch manager or your loan originator.
How To Maintain Your Sanity When Hosting For The Holidays
Welcoming your friends and family into your home can be one of the most anticipated events of the holidays. Whether you have family visiting from out of town, or if you’re hosting Christmas dinner this year, the fact that your home is the gathering place for your loved ones is a special privilege.
However, all the stress from cooking, cleaning, and social duties of hosting may get in the way of enjoying the moments and memories with your guests. Following these tips may help you achieve balance and celebrate the joy of your holiday gathering.
Prepare in Advance
Get ahead so you don’t feel like you are falling behind. Do you wait until the last minute to do your shopping, or prepare your home for guests? Of course, doing anything last-minute is a tried and true recipe for anxiety or stress. By making a list of what you need from the store early, you may be able to beat the holiday crowd — if you wait until the day before Christmas, you are giving yourself the gift of a stress filled shopping trip. The best cure for situational stress is preparation. You can do it!
Don’t Overcommit
Promising more than you are able to deliver will run you ragged. While it is sometimes easier to say ‘Yes’ than to risk confrontation, Remember, it is okay to say ‘No.’ If you lack space or patience to host guests from out of town, or if you are uncomfortable cooking a complicated meal, it’s okay to say ‘No.’ Your family most likely loves you as much as you love them, and will understand. Ultimately, you will be more relaxed, leading to happier holidays.
Delegate Tasks
Once you have prepared and decided that you can handle hosting your loved ones, it’s time to distribute the work to those willing to help out. Relying only on yourself to get everything done will make it difficult to enjoy the experience. Ahead of time, take down a list of everything you need to accomplish, and try to delegate at least 50% of the tasks to family members or outside sources. If you have limited help, or limited space, this is where prioritization and balance really come to the rescue.
Consider Catering
If you normally find yourself trapped in the kitchen during your holiday hosting, consider catering a meal for your guests to enjoy. Sure, your grandmother’s family pie recipe is better, but is a ready-to-bake pie from the store good enough? Is the catered green bean casserole better than your old standard? Even outsourcing a portion of the kitchen tasks can give you room to breathe, and even enjoy the tasks you’ve reserved for yourself to brag about. Everyone will likely appreciate mixing up your typical holiday cuisine, and you will gain quality time spent with your friends and family instead of stressing in the kitchen. Joy to the host!
What Are Your Tips?
If you have tried these, or if you have your own tips that we should know about, please leave it in a comment below! We would love to hear from you.
Ready to Buy a New Home? 5 Free Resources to Get You Started
Are you purchasing a home for the first time? Are you looking to move? We have compiled five free resources to ensure you have an amazing experience buying your new home.
1) Your Way Home
Do you want to learn more about the process from applying for a mortgage through closing on your new home? Do you have a realtor? Do you need one? Why do you have to sign so many documents? Confused? Don’t be. Checkout this free tool that explains the process from start to finish and provides a customized path to finding and purchasing your home after you answer four quick questions.
Go see it out here: Your Way Home
This tool is available on our loan officer sites. Go here here, and visit one to see more.
2) Simplifying the Home Buying Process In 7 Steps
What’s the difference between prequalification and preapproval? What do home inspectors look for? What happens during your closing? Watch these short videos featuring actual loan officers, realtors, appraisers, and underwriters who will walk you through the process of buying your dream home.
Check it out here: Benchmark University
3) Gather Your Documents
What paperwork do you need to compile to apply for your home loan? Your loan officer will help you gather all of the documents you need to seek approval for a loan. Want to get a leg up? Check out what documents you will need here.
See which documents you should have ready: Benchmark University
4) Mortgage Calculator
What will your monthly payment look like? How much will you pay in interest over the life of your loan? Can you really afford the house you want? Use this free, easy, and intuitive mortgage calculator to calculate your estimated monthly payment.
Do some mortgage math: Mortgage Calculators
5) eBooks on Buying and Selling
Stressed about buying a house? Having trouble selling your current home? What is a short sale? These free ebooks will help you purchase or sell a home with confidence.
Check out (no pun intended) our free eBooks: Benchmark University
Still have questions? Ready to get started? Reach out to one of our Branches to start the process of purchasing your new home today, or apply now!
Still have questions? Ready to get started? Contact us or apply now to start the process of purchasing your new home today!
Still have questions? Ready to get started? Call me, contact me, or apply now to start the process of purchasing your new home today!