How To Beat Your Competition In Buying Your Dream Home

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While visiting one of your favorite Texas neighborhoods you come
across a lovely colonial that has just been put on the market. It
has everything that you want in a home for a price that is in the
range of what you know you can afford. You arrange a visit to the
home and you not only like what you see, you love it! Quickly,
you make an offer fully expecting that the owner will accept it.
However, there is a problem -- a big one -- that will scuttle
your purchase because you confused an important issue:
pre-qualified vs. pre-approved for a home mortgage. Regrettably,
the couple that came in immediately after you got the house
because they were already pre-approved for their home mortgage.
Your dreams have been dashed all because of a misunderstanding
that did not have to happen. Please read on to find out the
distinction between two very different approval procedures and
what you must do to ensure that you are adequately equipped
before bidding on a home.

Not much else in life is more disappointing than to find your
dream home has been sold to someone else. Even worse, discovering
that you could have had the upper hand in the home buying process
had you sought pre-approval for a Texas mortgage loan first.
Whether you are seeking a regular home mortgage or one backed by
a government entity such as an FHA Loan or a VA Loan, having
everything in place before you start your home search can save
you a lot of aggravation and grief later on. Quite simply, a
little bit of preparation and foreknowledge can spell the
difference between you getting the home of your dreams or seeing
those same dreams dashed.

Getting pre-qualified for a home is something that is usually
done by a realtor. Generally, this person wants to see that you
can afford to purchase a home before spending valuable time with
you. Sometimes a realtor will want certain financial information
from you before beginning to help you find a home. This can
include salary information, down payment amount available, or
anything else they may require before moving forward.
Prequalification is a fairly informal process that does not
involve the running of credit reports or the submission of
detailed financial information. Essentially, it is your word to
the realtor that you can afford a certain home.

On the other hand, a pre-approved home mortgage loan goes well
beyond a prequalification. Detailed financial information is
given to your mortgage broker who will then determine your
creditworthiness. Your salary, debt level, credit history and
credit score are all some of the things that come into play when
determining whether a pre-approved Texas mortgage will be
granted. For the most part you aren’t committed to the home
mortgage, but you can take the pre-approval with you when
negotiating to purchase a home. In addition, a qualified and
knowledgeable mortgage professional can supply you with the
information you need regarding an FHA Loan or a VA loan and how
best to approach these application processes.

A pre-approved mortgage loan is much more valuable to a home
seller than prequalification. It can take 4 – 6 weeks for you to
get a home mortgage approved, if you were not pre-approved (in
other words you were prequalified for your mortgage).  Whereas
the pre-approved individual will get to closing within
approximately one week (3-10 days depending upon the lender)
after they notify the mortgage broker of their home choice.  If
you are already pre-approved for a mortgage, this step is usually
taken as a clear signal to the seller that you are serious about
buying their home. Importantly, if the seller is in a rush and
there are two parties interested in buying the home, the one who
has a pre-approved home mortgage will beat out the party who is
simply pre-qualified.

So, if you are serious about purchasing a home, visit a Texas
mortgage broker before starting the home buying process. Your
realtor can be a valuable resource to help you find your dream
home, but they usually will only pre-qualify you for a home,
while an experienced Texas mortgage broker can pre-approve you
for a home mortgage and share valuable information with you about
a VA loan or an FHA loan. Pre-qualification or pre-approval for a
mortgage loan is a simple, yet distinct difference; knowing the
best road to take can spell the difference between getting your
dream home or watching those same dream evaporate before your
very eyes.


If you are looking for articles for your web site or your
newsletter on this topic and many other topics, may I recommend
http://groups.yahoo.com/group/Free-Reprint-Articles for the best
selection.

About the Author

Frank Oakerson is licensed loan officer #56753 in the state of
Texas. I am available to assist you in purchasing your first
home, bad credit mortgage, FHA Loan, VA Loan, you name it.
At http://www.yourmortgage123.com you will find a number of
informative articles, mortgage calculators, info on VA loans,
mortgage refinancing, stop my foreclosure, and getting
pre-approved.  Stop by and let me get started on a Texas
mortgage for your property today.  I have all of the information
and tools you need to make your home buying dreams a reality.

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