Many homes are available for sale in the Washington DC, Maryland area due to the housing crisis. Trying to obtain a loan to purchase a new home is a little more strict than it used to be but it’s still certainly possible. The first step in the process is getting pre-approved. This means the lender will approve you for a certain amount for a loan. At that point you can visit a real estate agent to look at listing within that loan amount.

Certain documents are needed when applying for a preapproved loan. They include:

• Financial statements including bank statements and check stubs
• Credit Scores
• Down payment and closing costs cash
• Completed Mortgage application

You have probably heard terms “preapproved” and “prequalified,” right? They are two completely different things. Prequalified only means that your credit score has been checked and you have been prequalified for a possible loan, not preapproved. A great benefit to preapproved loans is that the loan amount is set up front. This way you won’t go out and pick a dream home that is above your means. You can look at homes that fit in with your budget. Sellers also like the preapproved buyers because they know these people are serious about buying and are ready to purchase.

It is important to look and make a decision on your preapproved home as these types of loans will have a time limit. It will not do you any good to let the preapproved loan amount lapse. Many factors can and do change with interest rates, credit scores and the market in general.

Washington DC and the Maryland area have a lot of real estate agents that you can visit and weigh all of your options. Be sure to speak with several lenders to get the best possible interest rate, real estate agents to view the listings that are best suited to your criteria and be ready to purchase the dream home you have always wanted.

 

 

Related posts:

1. Home Buying Tips – Enter The Market Qualified Or Approved
2. The Benefits Of Buying Real Estate In Maryland and Virginia
3. The Benefits Of Buying Bank Owned Real Estate
4. Why Sellers Prefer Buyers With Pre-Approved Finance
5. Mortgages – The Downside To Credit Unions And Niche Banking