The power of a mortgage pre-approval when shopping for a home

I KONNECT The American Dream Homeownership

Hello and Thank you Listeners for tuning in to I KONNECT weekly podcast "YOUR REALTOR" Giovonnia with Coldwell Banker Realty Welcome to the The American Dream homeownership "Bridging the gap of homeownership while leaving an inheritance for future generation" *Why pre approval matters: This is the first step in any home search in finding out exactly which home you can afford and securing the financing to make the purchase. While you can get a rough estimate through the prequalification, taking the extra step to obtain pre-approval will give you some added advantage. PRE-APPROVAL HELPS YOU: Understand your financial condition. Know exactly how much home you can afford before you begin your home search. Strengthen your purchasing power when making an offer. THE PRE-APPROVAL PROCESS: Here are some documents that you will need to provide your lender to get the pre-approval process started. INCOME . Current pay stubs, usually for the last two months. . W-2s or 1099, usually for the last two years. . Tax returns, usually the last two years. *ASSESTS . Bank statements . Investments/brokerage firm statements . Net worth of business owned (if applicable) *DEBTS . Credit card statements . Loan statements . Alimony/child support payments (If applicable0 MAKING AN OFFER: * There are many factors that influence the market value of a home. Your agent will give you the insight and information you need to make an offer you're comfortable with. Here's some factors to consider include. . How long the home has been on the market. . If the price has been reduced. . How much the home is worth through a Comparable market analysis (CMA) showing the list and sale price for similar homes in your area. . If there are multiple offers. . Other items that might be included in the sale( furniture, hot tub, etc). .The list to sale price ratio, an indication of how competitive the market is for homes in a particular area. . Why is the seller selling? . Whether the seller is offering an assumable loan or financing. . Once the offer is written, your agent will present it to the seller agent. At that point the seller can accept your offer or reject your offer, or counter offer it to start the negotiation process. . Your agent will work with you to plan a strategy to ensure the most advantageous terms and acceptable pricing for you and your budget. In closing: I leave you with this take-away: The American dream homeownership is obtainable with understanding the process of becoming a homeowner. Your dream home is out there!!: Let's start preparing for a place to call home. "Old keys won't open new doors, when you want different, you have to to start moving different" *Please subscribe, submit to "YOUR REALTOR" Giovonnia your questions & comments on I KONNECT. Thank you for listening and stay tuned for part two of this episode.