Why Every Home Buyer Should Get Mortgage Pre-Approval

What is the benefit of having a Mortgage Pre-Approval when looking for a new home?

There is a difference between a Mortgage Pre-Qualification and a Mortgage Pre-Approval.

A mortgage pre-qualification is based on the information you verbally give to your loan officer to  get a snapshot of how big a house you might afford and how much money you can afford to borrow to buy it.

A Mortgage Pre-Approval is an application file reviewed by an underwriter to be sure your income; assets and credit history qualify you to get the loan you are applying for.

Knowledge is Key:  A Mortgage Pre-Approval gives you a firm idea of how much house you can afford. The underwriter bases this amount using a formula that compares your income to your total outstanding debt.
The Debt:Income Ratio (DTI) is derived from the monthly payments that show up on your credit report and the income documents you surrendered as part of the process. This will keep you focused on the big picture and help to prevent being disappointed if you fall in love with a home that is too expensive.

Improve Your Negotiating Position:  When a seller is comparing two offers and one of the buyers has Mortgage Pre-Approval there is a high confidence level that the deal will go through and close sooner. This may help you to win in a competitive bidding situation.

Confidence in Your Offer:  Knowing that the key information in obtaining a mortgage has been reviewed by an underwriter will give you, and the seller, confidence that your offer is bona fide.

Keeping Your Spending On Track:  Having detailed information on your interest rate, mortgage payment, closing costs and down payment requirements will help you stay within your monthly budget.

Time is Valuable:  Knowing what you can and cannot afford can save you time and frustration in the house hunting process. This will help your Realtor find the perfect house in your price range.

Move in Quicker:  Having Mortgage Pre-Approval will save you time when you submit your complete mortgage application for approval. Everything has been done beforehand. All you need is and inspection, appraisal and closing documents. The faster you close, the sooner you can begin to enjoy your new home.

pre-approval 2If you are looking to buy a new home, a Mortgage Pre-Approval is the smartest way to get into your new home. Call Me at 860.945.9284 to discuss the right mortgage option for your family and to take advantage of my  FREE Jump Start Mortgage Pre-Approval service.

Thomaston CT Homes for Sale – Eligible for 100% USDA Financing

usda 3These selected Homes for Sale in Thomaston CT are Eligible for up to 100% USDA Financing with a Guaranteed Rural Housing Development Loan.

The USDA Guaranteed Rural Housing Development Loan offers many benefits to qualified buyers:
•   Up to 100% Financing of the home’s Appraised ValueNo Down Payment Required
•   Ability to Finance the Closing Costs in the loan when the Appraised Value is higher than the negotiated sales price
•   One 30 year fixed rate mortgage at low-interest rates
•   Reduced Mortgage Insurance beats FHA and increases buying power.

Call Me @ 860.945.9284 to discuss the right mortgage option for your family and to take advantage of my FREE Jump Start Mortgage Pre-Approval service.
With USDA Guaranteed Rural Housing Development Loan you just might be able to move in to a new home this New Year with a minimal down payment and low to no closing costs.

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52 Stoughton St, Thomaston, CT  

52-stoughton
It’s so much larger than it appears. Plenty of room to stretch out in this well cared for cape style home boasting 4 BRs with a full bath on each floor. Many possibilities for small. large or extended families.
Ideal for Millennial First Home Buyers.

174 Edgewood Avenue, Thomaston, CT
174-edgewood

Charming 4 BR ranch with many extras. Reduced price for New Year sale

 

 

Please Note; Most single-family properties for sale in Thomaston, CT are eligible for the USDA Guaranteed Rural Housing Development Loan program. Condos too, as long as the HOA meets FNMA and FHA guidelines. The program has liberal income limits and DTI ratios that might enable buyers of other high-end homes to qualify for this program. Call me for details.

52 Stoughton St, Thomaston, CT For Sale – Eligible for 100% USDA Financing

usda 3It’s so much larger than it appears. Plenty of room to stretch out in this well cared for cape style home boasting 4 BRs with a full bath on each floor. Many possibilities to accommodate small. large or extended families. Ideal for Millennial First Home Buyers.

And it’s Eligible for Up to 100% USDA Financing.

Closing Costs can be rolled into loan amount.
Low Rates! Reduced MI. Beats FHA and CHFA any day.

52-stoughtonhttp://www.zillow.com/homedetails/52-Stoughton-St-Thomaston-CT-06787/57821597_zpid/

Reach out to Rick Cignoli at 860.945.9284 to see if the USDA Guaranteed Rural Housing Development Loan is the right mortgage option for you  and to take advantage of his FREE Jump Start Mortgage Pre-Approval service.

Then call Kristen Butts at Clemens & Sons to schedule a showing and be ready to make an offer.

House Hunt with Confidence: Get Pre-Approved

prequal-vs-preapprovalThere is a difference between Mortgage Pre-Qualification and Mortgage Pre-Approval. As a potential homebuyer it is important for you to understand the difference and know which one fits your specific need.

Pre-Qualification:  A mortgage Pre-Qualification is an informal snapshot of your creditworthiness and how much you may be able to borrow. It’s simple process you can do over the phone or on-line. You’ll answer a few questions about your income, your long-term debts, your down payment and closing costs ability, etc. – Just to get a general idea of how much you can to spend on a new home. Pre-Qualifications not binding. There’s no guarantee that you will, in fact, get a loan for that amount. 

Pre-Approval: A mortgage Pre-Approval is a formal commitment from your lender that they will lend you a specified amount of money, subject to an appraisal of the home you decide to buy.
To become Pre-Approved, you’ll need to provide documentation of your creditworthinesspre-approval 2 and ability to pay. A Mortgage Underwriter will review and verify your documentation to determine how much the lender thinks you can afford to borrow and issue to you a formal Mortgage Commitment Letter. A Mortgage Loan Officer cannot issue you a formal Commitment letter.
By getting Pre-Approved for a mortgage before you start house hunting, you will be able to shop with confidence and show sellers you are qualified and serious about buying their home.

The Difference
Get Pre-ApprovedApplying for mortgage Pre-Qualification, or even better, Mortgage Pre-Approval are important first steps in the home buying/home financing process. However, know there is a difference between the two. As a potential homebuyer it is important for you to understand the difference and know which one fits your specific need.
 

Reach out to Me to discuss the right mortgage option for your family and to take advantage of my FREE Jump Start Mortgage Pre-Approval Service

 

First Home Buyer Checklist

For Millennials, buying your First Home is an exciting adventure. Owning a home is the American dream. It’s also the largest investment most of us will ever make (aside from perhaps the cost of a college education), Knowing what you’ll need before starting the trek is just as important as knowing what isn’t required. Here are some tips.

 Here’s what you’ll need:
♦   Get Mortgage Pre-Approval. A Mortgage Pre-Approval is a commitmenapp approvedt by your lender that they will lend you a specific amount of money when you find your new home.  By getting Pre-Approved for a mortgage before you start house hunting, not only can you shop with confidence, but you’ll be show sellers you are qualified and serious about buying their home.
♦   Enough income to pay monthly mortgage payments. Keep in mind that FHA MIyour monthly mortgage obligation will include not only the mortgage payment, it will also include an escrow payment for your home owners insurance (HOI), taxes, and your monthly mortgage insurance premium (commonly called PMI or MIP).
♦   The ability to maintain the property. You must keep a home in good repair or it will lose value and you’ll lose money. One of the “joys” of homeownership is keeping up with the chores around the house.  You’ll need a lawnmower to maintain curb appeal and you can’t ignore peeling paint or unexpected repairs that eventually come along. If you’re handy you can DIY or you can hire someone to do it for you. Either way, it will cost money. And you ‘d better be prepared.
♦   A decent credit record. Your credit score is the major determining factor in your ability to get a mortgage at the best terms. Low scores are caused by late payments, bankruptcy or collection accounts
There is only one Website authorized by law to provide the Free Annual Credit Report you are entitled to under the Free Credit Reporting Act – annualcreditreport.com. Check it out! And if you see any problems, take action.

Here’s What You Won’t Need:
♦   A big down payment. Sure, it would be nice to be able to make a 20% down payment on your new home. With equity in your home, you canInterest Rates avoid paying PMI, you might get a better rate and you’ll lower your monthly payments.
But it is possible to buy a home with a small down payment. There are several loan programs available to qualified home buyers that allow for down payents as low as 3 to 3.5%; there’s even one that allows for up to 100% financing of eligible properties. Talk to a professional mortgage loan officer about the best option for your family.
♦  Experience. There is a lot of information on the internet about the whole home financing/home purchase adventure. It all tends to result in a giant house puzzlejigsaw puzzle. Look to the experts for help putting those pieces together. A professional mortgage loan officer has the experience to guide you through the complicated mortgage application process. A trusted Realtor can help find the right house, assist with your negotiations and address other issues with the home purchase.

Resource:  http://www.hgtv.com/design/real-estate/a-checklist-for-first-time-homebuyers

 

Thomaston CT Home for Sale-Eligible for 100% USDA Financing

Price Reduced for End-of-Year Sale! $196,900 

Charming 4 BR ranch with finished basement on level lot. 174-edgewoodhttps://www.trulia.com/property/3241641942-174-Edgewood-Ave-Thomaston-CT-06787

usda 3
Eligible for Up to 100% USDA Financing.
Low Rates! Reduced MI.
Closing Costs can be rolled into loan amount.
Beats FHA and CHFA any day.

Reach out to Rick Cignoli at 860.945.9284 to see if the USDA Guaranteed Get Pre-ApprovedRural Housing Development Loan is the right mortgage option for you  and to take advantage of my FREE Jump Start Mortgage Pre-Approval service.

Then call Sue Holway at Keller Williams to schedule a showing and be ready to make an offer by year-end.