One of the first things your YRL agent is going to say to you is GET PREAPPROVED! We have mortgage specialists that we will match you up with who will fit your needs perfectly! BUT WHY do you need preapprovals before searching for a home?
1. Once you have a preapproval in your hand you will know how much you can really afford! Imagine going into the absooute perfect home for you and finding out when you are ready to write an offer that you cannot afford that pricerange? No future homes will look as good to you and you will set your standards by that first house. Get preapproved.
2. Your YRL agent needs to submit a copy of your preapproval letter along with any offer we write. No preapproval letter and a competing offer by another buyer has a preapproval - guess who gets the house? The buyer who can prove that will get financing!
Preapprovals won't cost you anything up front and can be done just by giving a good lender the correct info to run your credit and get you a letter. Preapprovals are usually good for 90 days. Preapprovals don't always include the specific address because it is 'pre' buying but your lender will update the letter immediately when asked. Lenders usually run your credit report on 3 different credit bureaus - and none of them are Credit Karma so don't be shocked if your free Credit Karma score is not quite correct.
A credit score of 620 is normally a score that will get you qualified to purchase a home FHA or VA but there may be other special programs out there. A score over 700 though will make a difference in the cost of buying a home and your closing costs!
