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.

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

 

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.

Preparing To Own Your First Home

Preparing To Own Your First Home
referralAs a First Time Homebuyer, you’re about to make one of the biggest financial decisions of your life. For Millennials, a new home represents the most expensive purchase they’ll ever make. One of the best things you can do is read, research and learn about the mortgage application process. The more you prepare, the more confident you’ll feel about purchasing the home you want.

Mortgage Pre-Approval
Being pre-approved by a lender gives you the confidence to shop for a new house, knowing exactly how much you can afford. You can avoid looking at properties that don’t fit your budget. The pre-approval helps you know exactly what is possible right from the start. In fact, most realtors expect you to be pre-approved.

How Much Can You Afford?
A good place to start is to look at your current expenses. You probably have FHA MIboth “fixed” expenses… i.e. car payments, taxes, or day care … and “discretionary” expenses… i.e. things like travel, clothing, entertainment, or other areas where you can decide how much to spend.
Then, make up a budget. You’ll see how much of your monthly income is already committed to “fixed” expenses, as well as how much you have to spend on a mortgage payment, taxes, and insurance for a home.
Of course, how much you can afford also depends on how much debt you have. Long-term debt – i.e. debt that will take more than 10 months to pay off – is what lenders are most concerned about. If you have long-term debt that is considered “excessive” for your income, it will probably limit how much you can borrow. If you have a lot of long-term debt, you may want to pay off some of it before you apply for a mortgage.

mortgage financeRemember: I’m always here to help make things easier.  Reach out to Me at rick.cignoli@norcom-usa.com to discuss your mortgage options and to take advantage of my FREE Jump Start Mortgage Pre-Approval service.

It’s Not Too Late to Buy Your Dream Home This Season

Don't Sit on the Fence
Are you a Millennial? Are you a First Home Buyer? Are you thinking about moving up of downsizing? Is 2016 the year you’ve decided to get off the fence and buy that dream home?

Real estate professionals are always optimistic about the Spring Buying millenial 2Season. Sellers have finished staging their home for sale; the grass is green, flowers are blooming and curb appeal is at its peak. The Super Bowl is over; buyers are  out of hibernation and doing their on-line research to get prepared to make the biggest investment of their lives.

Spring is almost over, but it’s Not Too Late To Buy in 2016. Here are some facts to consider:
♠   Internet searches for real estate listings consistently peak in July.
♠   About half of all home sales occur between May and August making the summer months the busiest season nationally.
♠  About half of home sales occur in the “off” months of September through April. That’s a lot of traffic.
♠   Studies show that prices tend to peak in the busy Spring season. For Buyers, now is the time to buy..

The bottom line is this:  The best time to buy is when it’s best for yourGet Pre-Approved scenario. But, please don’t think your opportunity has passed. Low interest rates make now a great time for millennials to be in  the market for their First Home. Low financing costs make higher price points more affordable. Get Pre-Approved Now. Now is the time to buy!

 

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Open House Tips for First Home Buyers

In the real estate open housemarket today, there is little chance that as a prospective buyer you are entering a house before you’ve seen pictures of it online. While these shots can give you a good idea of whether or not you like a house, visiting it is still a primary requirement. An Open House can be a great opportunity to see a property in a more informal setting, letting you explore a bit on your own.

Check Out the Neighborhood   The first thing you should look into intentlyScope-out the-Neighbors.png doesn’t even concern the house at all. Explore the streets surrounding the house and take note of those who live there. Well-kept yards and kids playing outside can be signs of a great neighborhood while overgrown lawns and a lack of activity may be bad signs. Especially if a family is part of your plans, the neighborhood could be a crucial factor and is something that is difficult to get a feel for without visiting.

Check out the Curb Appeal   Once you arrive at the house, take a look at thecurb appeal outside before you head in. Does anything need repair or new paint? Does the roof look sturdy and intact? Chances are most things you notice will be cosmetic fixes, but if anything does jump out at you, you’ll be happy you took a look. Further, taking a lap around the house will let you know what level of privacy you have. Some people like to be able to always chat with their neighbors while some want to be left alone. Whatever your preference, it is good to know what you are getting into beforehand.

Check Out the House   Finally you should enter the house. Do a full tour and explore everywhere you are permitted. From the basement to the attic, you should look everywhere. It is always a great idea to take a tape measure with you to look at sizes of specific areas and the dimensions of drawers and cabinets. While you do not want to be overly pessimistic, it is vital to examine the home with a critical eye. Even the smallest spot of mold, for example, could be a sign of a bigger problem. Structural shortcomings can be tricky to spot as well, but are extremely important. foundation cracks, leaky walls and windows, and uneven floors can all easily go unnoticed, especially in darker areas like the basement. Besides crucial issues, there are some other factors to consider, many of them intangible. Things like the flow of the house and the way light enters are virtually impossible to tell through pictures, but can make a difference in person.

Check Out the Competition   Another great area to focus on is the people around you: the sellers, their agent, and other potential buyers. While you always want to remain extremely polite, you are certainly entitled to ask questions of the sellers and their agent. While they will put a positive spin on things, getting them talking about their reasons for moving can provide extremely valuable insight. Ask their opinion on the neighborhood, schools, etc. Also, keep your ears open to other buyers. They may know more about certain aspects of the area or point out something you may have missed. You should take advantage of every potential information source at your disposal.

Look At the Big Picture   While we focus on a lot of small things here, it is still very important to consider the bigger picture. Things like layout, number of bedrooms, bathrooms, and square footage are all extremely important. However, chances are you are aware of all of these things before you visit the property. Even so, verify all of the details listed online to be sure there are no surprises later on. Between what can be discovered online and what you’ll see in an Open House, you should be able to get a great idea of whether or not you are ready to proceed with an offer.

Call Me to discuss to discuss the right mortgage option for your family.
Take advantage of my FREE Jumpstart Mortgage Pre-Approval service and be ready to make an offer on the home of your dreams.

“When You Work With a Professional, You Get Professional Results”

39 Benedict St Terryville CT For Sale

39 Benedict
Motivated Seller!  Another Price Reduction!
Great bones. Gleaming hardwood floors throughout this expansive ranch. Loads of space, nicely laid out. Potential for Lower Level In-Law Apartment.


http://www.realtor.com/realestateandhomes-detail/39-Benedict-St_Terryville_CT_06786_M30249-90198

Call Me @ 860.945.9284 to discuss the right mortgage option for your family and to take advantage of my  FREE  Mortgage Pre-Approval service.
Then call Suzie Larson or Jan Marciano at Turning Point Realty, LLC 860.601.3730 to schedule a showing and be ready to make an offer.