(Board of Contact)
(Telephone Number)
(Date)
Prequalifying Helps Determine How
Much House You Can Afford
Before you start your house hunting
in earnest, the real estate professional with whom you are working likely
will "prequalify" you to determine a price range you can afford. According
to the (Full Name), ABR®, prequalification is a necessary part of the
home buying process that helps save you time and money.
"Don't be shy or withhold information
about your income or credit status. Your real estate professional isn't
trying to pry. Rather, he or she must know all details related to your
ability to obtain a mortgage," (Full Name), (Title) of the
(Name of Firm)
says.
By candidly discussing your financial
situation, you'll give the agent the information necessary to show you
homes you can afford, (Last Name) notes. "If you don't open up, you are
placing the real estate professional in the role of a tour guide, not someone
who can help you find a home within your budget. You'll wind up wasting
your time and that of the seller," (he/she) says.
Once you have signed a contract to
purchase a home, you must choose a lending institution or mortgage company
from which to obtain your home loan. Your loan application will request
financial data including your place of employment, assets, and liabilities
(including recurring debts such as credit card bills and car payments).
Here are two important tips on loan
qualification from the (Name of Firm) 1) Do not borrow the down payment
without disclosing the loan, submit fake letters-of-credit or gift letters,
or make secret financial arrangements. 2) Accurately list your income and
assets, all debts and the approximate amounts you owe.
You'll most likely be charged a credit
report fee by the lender, which will cover the cost of having your credit
history examined. Credit reporting agencies compile credit reports on consumers,
including bill payment history, as well as whether you have been sued or
filed for bankruptcy among other information.
Federal credit reporting laws do not
give you the right to inspect the actual credit report at the reporting
agency or to receive an exact duplicate of the report. But, you are entitled
to a summary containing the sources of the report's information.
If your ability to obtain a mortgage
is adversely affected by the credit report, you have the right to challenge
its accuracy and seek corrections.
"The credit report is part of the
information the lender uses to determine if you qualify for a loan. It
is not a mechanism to prevent you from buying. Remember, lenders want to
make loans, not turn them down," (Last Name) says.
(Full Name) is one of more than 40,000
members of the Real Estate BUYERS AGENT Council (REBAC) of the NATIONAL
ASSOCIATION OF REALTORS®, who have attained the ABR®, Accredited
Buyer Representative, designation. As the world's largest association of
real estate professionals focusing specifically on representing the real
estate buyer, REBAC is "The Voice for Buyer Representation," with more
than 44,000 active real estate professional members of the organization
throughout the world.