FINANCING

 LOAN PRE-APPROVAL & PRE-QUALIFICATION

A mortgage pre-qualification can be useful as an estimate of how much you can afford to spend on your home, but a pre-approval is much more valuable because it means the lender has checked your credit and verified your documentation to approve a specific loan amount (usually for a particular period, such as 90 days).

Getting  prequalified involves supplying a bank or lender with your overall financial picture, including your debt, income, and assets. The lender reviews everything and gives you an estimate of how much you can expect to borrow. 

A lender would provide a prequalification form that is needed to submit with a purchase offer, required in the State of Arizona.  Keep in mind that loan pre-qualification does not include an analysis of your credit report or an in-depth look at your ability to purchase a home. It’s based solely on the information you hand over to the lender, so it doesn’t mean much at all if you don’t provide accurate data.

The initial pre-qualification step allows you to discuss with your lender any goals or needs you might have regarding your mortgage. Your lender can explain your various mortgage options and recommend the type that might be best suited to you.

MORTGAGE OPTIONS – General Information

A conventional loan is any mortgage loan that is not insured by any government agency (i.e. FHA, VA or USDA). Today, most conventional loans are considered “conforming loans” because they are written to the guidelines set by Fannie Mae or Freddie Mac.

An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). Designed for low-to-moderate income borrowers, FHA loans require lower minimum down payments and credit scores than many conventional loans.

The Arizona VA Home Loan program is a popular option for those who served. They are guaranteed by federal government through the Veterans Benefits Administration, a part of the Department of Veterans Affairs.  An Arizona VA Loan almost always is offered with 100% financing. However, this does not necessarily mean that you will not to bring cash to close. There are closing costs associated with the loan as well as prepaid items like interest, taxes and insurance.. The good news is that Arizona VA down payment assistance programs offer sufficient grant money to cover the majority of these costs so you can buy your home with as little out of pocket as possible.

We want to match you with the right mortgage lender for your needs.  Contact us for a referral.