For the California first time home buyer (Ca first time home buyer) it would be to their advantage to get pre-approved for a home loan, than to be pre-qualified. Pre-qualification by a lender only give you an insight as to your capability to borrow and how much, it is a simple process and not comprehensive or accurate. Being pre-qualified is no guarantee that you can get a loan and you’ll have to go through the pre-approval process to do so.

Being pre-approved on the other hand is a much more in-depth and comprehensive process. It involves the actual process of applying for a loan, filling out and submitting all the forms and documents required by the lender. This will then be submitted to their Loan Underwriter for review. An important area that the Underwriter will be looking at is your credit score, as it covers several areas not just your finances.

Your credit score is a three digit number that is calculated by taking into consideration several factors. Factors that will be considered are your employment history, your present credit limit, and your past credit history. Where you live and for how long, how often you have changed addresses in a given period of time. This history is important as it can indicate stability or underlying problems. Many other factors will be considered as well, that’s why it is important to guard your credit rating as much as possible.

But once a California first time home buyer (Ca first time home buyer) is pre-approved, you now have a commitment from a lender giving you a loan for a specified amount in writing. Obviously this will be subject to certain conditions, namely it will be good for a specified period of time, and that there will be no change in your financial position, literally. Pay attention to the interest rate at the time of approval, if it is attractive lock it in for the approval period, if not possible do so definitely on settling on a house.

It is to your benefit to get pre-approved for a house loan before looking for a house. It gives you an objective analysis of your credit position and from this where needs improving and how to maintain it. Knowing how much you can borrow and what first time home owners assistance you are good for, and how much tax credit you’re allowed is also a large benefit. It also shows the seller how serious you are.

But most of all, it will empowers the California first time home buyer (Ca first time home buyer) with the capability to make confident decisions when purchasing their first house. And that decision will make them happy for a very long time.
-

ca first time home buyer about to buy your first house? Apprehensive, unsure of what it takes and if you can do it? Why not go to California first time home buyer and gather the facts!

Share This