Home Buying First Step

Before you begin to shop for a new home, you should set up a time to meet with a MaxFinance.com (sm)™ mortgage professional so we can determine the best loan for your situation. This will put you in a better negotiating position as a buyer. It is important to understand the distinction between being pre-qualified for a loan and credit-approved for a loan. The difference between the two terms can be crucial when you make an offer on a house.

To get pre-qualified for a loan, I will collect information about your debt, income, and assets. We will look at your credit profile and assess your goals for a down payment and different loan options that work best for you. MaxFinance.com (sm)™ can then issue a pre-qualification letter indicating the amount you are pre-qualified to borrow, this it is almost a meaningless waist of time because the other variables have not been reviewed.

Instead you should consider becoming credit-approved it is important to understand that a pre-qualification letter is just an estimate of what you maybe eligible to borrow, not a commitment to lend. Getting credit-approved for a loan gives you a competitive advantage when you bid on a home because you have been credit-approved for a loan subject to the property you intend to buy its almost as good as a cash offer, and allows you to negociate from strength.

To get credit-approved, we will complete a mortgage application and you will provide MaxFinance.com (sm)™ with documention about your income, assets, and recent bank records. A MaxFinance.com (sm)™ professional will review your mortgage options and submit your application under the mortgage program that best meets your needs. You will then advance the required application fee to cover the major loan approval expenses like an appraisal and trimerged credit reports. Once the application process is complete you will receive a MaxFinance.com (sm)™ credit-approval letter indicating the maximum loan you are qualified.

A credit-approval letter is not binding until an appraisal of the home you wish to purchase, insurance availability and sometimes other conditions that will be detailed in your credit-approval letter in obtained. As long as the real estate agents have done thier job this should not be an issue for completing your loan. If your financial situation changes (e.g. you lose your job), interest rates rise before you lock your interest rate or a specified expiration date passes, your situation may have to be reviewed and loan recalculate accordingly.