Getting Prequalified

image01It is essential that one be prequalified or preapproved at the very start of their home search. By doing so, you and your agent are able to focus immediately buying a home in Hawaiion homes that are within your price range. You do not want to waste your time looking at homes that you cannot afford or wish you could afford. You are guaranteed to miss opportunities if you are not prequalified. If the home you are looking at has lots of interest, you need to be ready to act quickly.

A seller needs to know the buyer is capable of purchasing their home. It is not unusual for a well-priced home to have multiple offers and you will be competing with other offers. You want to have the strongest offer, and that requires you and your agent to be prepared.

Kbay Properties can provide you referrals on who can assist with your prequalification. Your banker or credit union is also another source that you can utilize. This process is quick and one of the most important to finding your dream home.

Your mortgage consultant will be able to explain the different loan programs available and assist you in choosing the best option. It is critical in this current market environment to be represented by a knowledgeable agent who is aware of the volatile interest rates, rapidly changing policies regarding lending and the overall market conditions. KBay Properties is committed to keeping our clients informed every step of the way.find a hawaii home.image2

Tip: Once you have been prequalified or preapproved, it’s important that you not incur any further debt or change your employment status. If you change your financial circumstances in any way, you may not qualify for your home loan when it comes time to close the transaction.

Your credit history is a very important factor in determining how much credit you can be approved for. After all, lenders want to have a high level of confidence that the borrower will be able to pay the loan back in full and a history of responsible credit use can help you get a much more favorable interest rate along with other terms. Your credit score has a direct effect on the type of terms you can expect when getting a loan, particularly the interest rate. Typically, the better credit score you have, the lower the interest rate you can get. This will impact your monthly payments so pay attention to your Credit Score.