CHESTERFIELD, VA./ APRIL 05, 2019 (STL.News)
“When purchasing a home, it is imperative that your finances are in order,” said Potts in the video. “Perhaps the biggest aspects regarding finances are the mortgage pre-qualification and pre-approval processes.”
In fact, buyers must prepare and have knowledge of this critical process. However, there are differences between the two. Pre-qualification is usually the initial step in the mortgage process. “Pre-qualification is typically quick and easy,” noted Potts, who last year had an impressive sales volume of $7,693,950. “The potential buyer gives an overview of their financial history to their lender, which includes everything from income, assets and debts to one’s credit score.”
Following this sequence, the lender will then review the information and give the prospective buyer an estimate of the amount they can qualify for and their best mortgage options, which leads to the pre-approval process. “This is quite similar to pre-qualification, yet the pre-approval process is somewhat more involved,” added Potts, who has specialized in Chesterfield real estate for over a decade.
For example, the pre-approval process requires documentation and verification of the buyer’s income, assets and debts, as well as a credit check. “Your lender will use this information to determine whether or not to offer you a loan and, if approved, the amount of the loan and the interest rate,” stated Potts.
In order to qualify for a loan, one’s credit must be solid. Good credit assures the lender that one has stellar track record of paying their debts, such as credit card bills and college loans. “The higher your credit score, the easier it is to qualify for the lowest interest rates, which in turn makes buying a home more affordable,” concluded Potts. “When buying a house, keep in mind that the sooner you visit a lender, the faster you will know where you stand on getting a mortgage, and the steps you need to take to make this happen.”
To watch the video, please visit https://www.facebook.com/watch/?v=2577594742311178.
About Reginald Potts, Berkshire Hathaway HomeServices/PenFed Realty
Reginald Potts is an Associate Broker with Berkshire Hathaway HomeServices PenFed Realty and helps families through every part of the transaction, and offers complete services including relocation, mortgage, title and settlement, and home warranty. Contact Potts for a no-obligation consultation to discuss specifically how he can help with current and future real estate needs. For more information, please call 804-536-1319, or visit http://www.reginaldpotts.penfedrealty.com.