First Time Buyers

This is a great time for First Time Buyers to go house hunting!  Not only are prices reduced but interest rates are at an historic low. 

Earlier this week I spoke with first time buyers who wanted to know "where to start."  I shared that purchasing a home is a process. The first steps begin long before speaking with a mortgage professional, or contacting a Realtor. Purchasing a home begins with establishing credit, managing your credit and saving, saving, saving! This takes a lot of discipline, but will pay off in being able to qualify for a mortgage.  If by chance your credit is less than stellar, help is available to (over time) improve your credit scores. 
 
If you have been proactive and managed your finances well, you can move to the next phase. 
 
What's next? CALL MARGOT 610-306-7939: She will coach you through the process.

Cindy Mullen, mortgage consultant at Univest Bank (215-919-8038) was very helpful in defining what happens in the second step toward home ownership. Simply put, potential buyers need to speak with a knowledgeable mortgage professional. Cindy said the objective is for "the buyers to be either be pre-qualified or pre-approved for a loan"  and "there is a big difference between the two."
 
The pre-qualification process is more top line.  Information such as income, credit history etc. can be given verbally as well as written and there may be a credit report run. The pre-qualification process estimates the loan amount the buyer could qualify for and gives the buyer a good idea about how much house they can afford. A pre-qualification letter enables a buyer to start searching for a homes in an price range that's affordable for them and lets a seller know there is potential for this buyer to get a mortgage and to reach settlement. 
 
As per Cindy, the pre-approval process is much more "formal". The information collected is more in-depth; the buyer will be asked for documentation including tax returns, pay stubs and bank statement among others. A credit report is run and frequently the file is reviewed by an underwriter.  A pre-approval strengthens the Buyer's position when negotiating an offer and it confirms that the buyer has the needed funds to purchase a home and get to settlement. 

Once armed with a pre-approval or a pre qualification letter FROM A REPUTABLE lender, Margot will begin to help you find the perfect home!