Palm Beach Real Estate and Loans

OK, by now most consumers realize that they should have financing in place before even starting to look for real estate - so I won't beat up on that topic any more!

(BTW - even if you're not a first time buyer take a look at First Time Home Buyers Rule, it contains great advice for all Buyers.)

What I DO want to emphasize is that you need to be quite sure of the accuracy of what you've been told.

Most people use the terms PRE-QUALIFICATION and PRE-APPROVAL interchangeably and that can lead to a lot of problems.  There is certainly some fogginess in the two terms, but in general this is the way things go:

PRE-QUALIFICATION:

You go to a Mortgage Broker and say you need a loan for $x.  All too happy to help, the Broker asks you a few questions:  Do you have a job? Do you think that you make enough to afford the loan?  How's your credit?  Do you have enough money in the bank for an appropriate down payment?

If all of the answers are proper then YES, you are pre-qualified!!

All valid questions of course.  But we're missing something important here..... PROOF! Without that, you've got nothing.

PRE-APPROVAL:

You're basically going to be asked the same questions about your credit, income and assets BUT you will need to furnish proof of everything before an answer is given.

You'll provide employment history and current pay stubs, a credit report will be run, you'll provide bank statements, etc.

You're basically doing everything in the loan process  - the only thing you don't have is the specific property that you want to buy.

At that point a formal letter is sent out to your Real Estate Agent saying that you are PRE-APPROVED for a mortgage for $x, with y% down for a particular type of property.

If you have any questions, or to get pre-approved for a Palm Beach Gardens mortgage, just call me @ 561-282-7406 or fill out Knightlines' Application form.