Let’s Talk About Pre-Approval

You are ready to start looking for a home, YAY! Now what to do next?

If you haven’t already find a trusted real estate agent (I would be honoured to help you)

You find a trusted loan officer - this person is going to get into your finances, and you need to be 100% truthful when speaking to the loan officer about any items that might come up as they prepare your pre-approval.

This person will also be going over what all costs to be expected on your upcoming home purchase, as your down payment, closing costs, etc can vary depending on what loan type you will be using as well as what you and your real estate agent have offered for a home.

Some terms to get familiar with as you start this process:

DTI - debt to income ratio - this will take all of your debt for you (and anyone else on the loan) and compare that to what you make to come up with your debt to income ratio.

Closing Costs - This can be anywhere from 3-6% of the loan value - this cost covers processing fees to the lender

Earnest Money - This can vary - and is not a requirement but when you are looking to purchase a home in a competitive market - this let’s the seller know you are serious about purchasing the property.

Option Money - This money will be credited to the buyer at closing - if you choose to walk away from a transaction and have paid option money, this is money you will not get back.

Purchasing a home can be very stressful and exciting - be sure to listen to what your loan officer says to do in order to make it to the closing table with no issues!

Happy Hunting1