I want to go look at houses to buy. Should I get
pre-approved for a mortgage?
YES, you absolutely should. There are several reasons why it is worth your time to do so.
Being PreApproved sets a budget amount for what you can afford.
Being PreApproved makes your offer stronger in a “Sellers Market” when you submit an offer to buy thus giving you a competitive edge. Occasionally credit reports contain incorrect information. By getting pre-approval in advance, you have the time to resolve the errors. Correcting any errors in your report may quickly improve your credit score for a better rating.
Being PreApproved, Closing times are usually quicker making for a stronger offer.
Being PreApproved tells your REALTOR® that you are serious about purchasing.
What documents should I gather for a smooth Pre-approval for a Mortgage?
1. Personal Identification
2. Social Security Card
3. Pay Stubs
4. Bank Statements
5. Tax Documents:
your two most recent W-2 forms
previous 2 years of tax returns
Others as requested
6. Investment Account Statements
7. List of Monthly Debts
Your debt-to-income ratio (DTI) helps lenders decide whether or not you’re able to take on more debt. It shows how much money you have going out versus what you have coming in. There are maximum DTIs for mortgage approval, depending on the type of loan. If your DTI is above that maximum, you may not qualify for a mortgage loan.
8. Rental Information. This may include Landlord References.
9. Gift Letters
10. Credit Report – This will be pulled by the lender for you.
Can you recommend a Mortgage Lender?
YES. I have a short list of preferred lenders that I work with. I will tell you which of my preferred lenders I think would be best for you to work with based on your personality or needs. While all Mortgage Lenders offer Mortgage Loans, not all are able to offer Down Payment Assistance (DPA) Grants or Loans.
What are the current Mortgage Rates?
I literally cannot quote a rate for a Mortgage Loan because I am not licensed to do so. That would be like asking a Podiatrist to take a look at your throat and prescribe antibiotics for a sore throat. Doing so is unethical. I WILL direct you to one of my preferred lenders who will help you to determine what a mortgage rate would be for your situation.
Are we in a Seller’s Market?
This depends on the location, day and whom you are talking to. Typically, when the supply of homes available is less than the demand, you will be in a Sellers’ Market. We went through a phase recently in which homes would only be on the market for mere hours. Due to a recent uptick in interest rates, the demand for homes has been slowed.
A Sellers’ Market is anything less than a 6-month supply of homes on the market. A Balanced Market is basically 6 months’ supply of homes. A Buyers’ Market is anything more than 7 months’ supply.
As a Buyer, you will want to be prepared with a preapproval for a loan. Your REALTOR® will need to know what type of loan you are preapproved for as certain loan types will affect what types of home you can purchase.
As a Seller, you will still need to look closely at the data for similar homes near you. Over pricing your home will almost always cause your home to linger on the market. Location, Condition (needed repairs and cleanliness) and Price all will affect how quickly your home will sell.
My ancestor passed away and now I must not only handle their estate but sell their home.
First off, our sincere condolences. If you have the financial ability to take a moment to grieve, please do. Unfortunately, not everyone is able to do that. We can assist you first by providing a price opinion of what the home would sell for at the time of your loved ones passing. We can share with you a list of our trusted service providers for everything from estate or probate attorneys to estate sales entities to the plumber to repair that water leak that feels impossible while you are grieving. We can walk you through the sale of the home and take a little bit of pressure off of you.
Please, if you are grieving and are needing to sell a loved ones home, talk to us and get a price opinion of the home before you agree to sell the home to anyone who asks. You may be surprised at the value of the home.
I see on a national website many homes as “pre-foreclosure”. They seem like a great deal. Can you help me to buy one of those?
First, please understand that the pre-foreclosure stage is the period between the time in which a Notice of Default (in nonjudicial foreclosure) or lis pendens (in judicial foreclosure) has been issued to the homeowner.
Second, many of these homeowners are attempting to keep their home from actually being foreclosed on. They have the legal right to cure the default and many do cure the default. Thus, a majority of these homes are not actually for sale.
If you are interested in one of these, please do reach out to us. We will reach out via mail and phone first to see if the home owner is actually willing to sell their home. If they are willing to sell their home and have not already listed it with a real estate professional, we will provide them with CMA so they are aware of the potential current value; while also working with you to schedule a showing.
In 2023, many homes that are in pre-foreclosure do have equity position.
Life has happened. I have had a crisis that has impacted my ability to pay my home loan and now have received a Notice of Default. Can you help me?
Virginia speaking here directly from my heart to you. I have been there myself as a single parent; there are options for you. I would first encourage you to work with your lender to see if a loan modification or some other option is available. I will also assist you with a market analysis of your home. Sometimes, the best course of action is to put your home on the market. The positive is that this is not 2010 and we are not a housing collapse. Depending on how long you have owned your home and other factors, you may have a positive equity position. Call me to chat!
I want to buy a manufactured home on a rented lot. How should I go about that?
As with all potential purchases, get pre-qualified for a loan or have proof of funds for a cash purchase. Most Manufactured Home Communities require you to be pre-approved before buying a unit in their community. If you know you want to specifically live in a particular community, it may be a good decision to get the pre-approval done before you make an offer on a unit in that community. Call us to represent you as a Buyer’s Agent and we will walk you through the process.
I want to sell a manufactured home on a rented lot. How should I go about that?
Reach out to us! We will happily provide you a comparative market analysis. When you list with us, we will be happy to assist you.
It must be nice to look at pretty houses all day, what else do you do?
We do love looking at pretty houses. There are over 100 individual tasks that happen in every transaction. Not only do we need to know what the market is doing, we must stay abreast of all the legal statutes, forms, local regulations, association rules, attend continuing education classes, write and review contracts, present offers, prepare other documents, develop marketing plans, track buyers loan progress, schedule inspections and appraisals, negotiate on behalf of our clients, prospect, follow up and the list goes on. We are also busy building relationships with our clients. You are not just a transaction to us.
Do you do Property Management?
At this time, we do not provide Property Management Services. We encourage any one looking to rent to check out the Catholic Outreach Almost Home website in for the Grand Junction area. www.catholicoutreach.org/
We will caution you that there are varieties of scams in regards to rentals. Please review https://dre.colorado.gov/rental-scams to help protect yourself.