getting a mortgage

A Quick Guide for Mortgage Pre-Qualification

by Shea Homes on October 10, 2016

Mortgage 101 for Pre-qualification

When you’re researching home financing options, it’s easy to get a lot of the terminology mixed up. From understanding the different types of loans to remembering the difference between a mortgage pre-qualification and a mortgage loan approval, there’s a lot of new vocabulary to understand. We get it. Buying a home can be stressful, but it doesn’t have to be. To help you start off on the right foot, we’ve created a handy checklist for the start of your journey — the pre-qualification process!
But first, let’s review what a mortgage pre-qualification is, and what it isn’t.

Pre-Qualification vs. Loan Approval

A pre-qualification is an estimated maximum loan amount from a lender. It is determined based upon your debt to income ratio, meaning how much money your household makes in a month and how much debt your household carries per month.

A pre-qualification is not a guaranteed loan amount. You are not committed to do business with the lender providing the pre-qualification and the lender is not obligated to provide a loan of any amount.

Benefits of Pre-Qualifying for a Home Loan

Once you receive a pre-qualified loan amount from your lender, you’ll have the peace of mind that you can move forward with the home-buying process. You’ll also be able to start thinking more realistically about the amount you can afford for a new home. When your lender sends your pre-qualifying loan amount to you, the information should include an estimated loan amount for your max budget, plus your estimated monthly house payment. But keep in mind, the estimated monthly house payment may change once you move into the loan approval stage — depending on the amount of taxes, interest, fees and insurance you’ll need to pay on your loan. You’ll know what your final monthly house payment is once you’ve finalized your home selection and have provided your down payment amount and your credit information.

Tips for Mortgage Pre-Qualification Prep

You should have all of your finances organized and ready to go when the time comes to provide a lender with your information. Set yourself up for success by sorting through your statements now, so it’s less stress when you’re getting it all together.

Debt to Income Ratio Infographic

Pre-Qualification Checklist

Receiving a pre-qualifying home loan estimate is easy and fast. Download and print or pin our checklist below to

be ready for your first meeting with a mortgage lender.

For more information on what you’ll need to be approved for a home loan, check out the Shea Home Buying Guide.

 

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Thinking of buying a new home? You’ll want to read this first!

by Shea Homes Arizona on November 13, 2015

Buying a New Home
A home purchase is often the largest, single financial investment people make in their lifetime. Buying a home, the place you live, raise a family, entertain your friends and make memories should be exciting. There shouldn’t be any mysteries or unexpected surprises in the home buying or mortgage process to cloud the bright future in your new home.

Shea Homes has a history of caring about our customers, which begins with simplifying the home buying process, including the mortgage. It’s not uncommon to have more questions than answers, that’s why we created the Home Buying Guide  for some great, interactive tips to clarify the journey of buying a new home.  Understanding the “inside baseball” terms, the various steps in home buying, and what to expect at each one goes a long way in making the new-home buying experience a great one. Here’s what one Shea Homeowner has to say about the process:

“This was our first time building a brand new home. We have owned several homes prior so knew exactly what we wanted and decided to have Shea build our “dream”. Rather than telling us what we couldn’t have they did all they could to give us what we wanted! The staff, from the very first person we met at the model to the last person we did the final walk through with, became family and treated us with so much respect. They answered any question and fixed any problem “the right way” no matter the cost to them or the difficulty. I was always asked if there was anything else I needed or wanted. If ever I have to move out of my perfect home I will only buy with Shea Homes!”

Plan Ahead…

If you aren’t sure if home ownership is right for you now, but purchasing a home is in your future there are a few of things to consider. First, is your credit score. When it comes to buying a house, your credit score is important. Missing or late payments on rent, a mortgage, credit cards, automobile payments, or just about anything can influence your credit score. The best practice is to pay on time, every time.

Second, is paying off debt. Lenders look at your income and the total of all your debts, this is called your “debt-to-income ratio” and will determine how much home you will qualify to purchase. Finally, save a little something.  Having the necessary funds for a down payment is important in qualifying for a loan to purchase your new home.

Interest rates are at historic lows, making this a great time to buy a home. If “rent vs. own” is where you are, try this for some answers. If you have more questions, the Home Mortgage Guide can help. 

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