Pre-Financing

Strengthen your buying power by presenting one of the below listed documents BEFORE you look to purchase real estate:
1.) Mortgage loan pre-qualification estimate
2.) Pre-Approved Mortgage
3.) Evidence of Proof of Funds

These documents will significantly, strengthen your negotiating power, boost your credibility, and simplify the purchase process.

Pre-Qualification
A mortgage loan pre-qualification is an estimate of how much money a lender would be willing to loan you based on what you can afford.  There is no cost involved and there is no commitment on either side. The estimate is helps you determine if buying real estate is a viable option, and if so, what your reasonable price range would be.

This involves contacting a lender, and simply providing estimated information on your income, assets, debts, and a potential down payment. The lender utilizes this information to furnish a written estimate of the monthly mortgage amount you might be able afford.

Pre-approval
A pre-approved mortgage is a tentative commitment from a specific lender stating how much money a lender would be willing to loan you. This process typically requires an application fee as the bank will run a credit check and verify your employment and financial information. The pre-approval helps you shop with confidence for real estate that you can afford.

This involves contacting a lender, and providing actual documentation that verifies your income, assets, debts. The lender utilizes this information to furnish a letter of commitment, stating how much money they are willing to loan you. The funding will only be given if the property appraisal, title search, and other verification check out on the real estate you have chosen to buy.

The best part is that the pre-approval is not binding; you remain free to obtain a mortgage from a different lender if you desire.

Evidence of Proof of funds
Evidence of proof of funds is required to prove one or both of the following:
1.) You have the money to make a down payment .
2.) You have the money to purchase the property without obtaining a loan.

This document may come in many forms such as:
1.) Original or Online bank statement
2.) Open line of credit letter
3.) Certified financial statement

For security reasons, make sure the documents do not show your account number and / or Social Security number(s).

Check your credit rating before you apply for a mortgagepre financing
Credit scores produced by the Fair Issac and Company are known as FICO scores. FICO scores are used by most lenders to determine your credit risk. You actually have three FICO scores, one from each of the three credit bureaus: Equifax, Experian, and TransUnion.

For a small fee, you can get your  fico credit score and/or review your credit report by going online to www.myfico.com or contacting the credit bureaus directly at:

Equifax:          (800) 685-1111  www.equifax.com
Experian:       (888) 397-3742 www.experian.com
TransUnion: (800) 916-8800 www.transunion.com

It’s a good idea to review your credit report thoroughly. If you find that your report is not accurate you can have the agency make the required corrections before applying for a loan.