Wednesday, November 28, 2012

You Cannot Afford Not to Buy with Orlando's Low Interest Rates

Orlando mortgage rates have been amazing low in 3%'s, something not seen since the 1970's.  Buyers are taking advantage at these low interest rates as the Orlando Real Estate market is rebounding.  The best place to start when shopping for a loan is to get preapproved, this will put you in much better position if there are multiple offers on property and during negotiations.  What is the difference between a prequalification and pre-approval? 

A prequalification is an estimate of the loan a lender maybe willing to loan you based on preliminary information you provide concerning your income, assets, debt, and credit.  This a informal process and is based many times on your verbal representation. This does not represent any type of committment from you or the lender.

A preapproval is a more formal process in which you will provide mortgage documentation and complete a loan application to your lender.  Mortgage documentation could consist of bank statement, tax returns,
W-2's, your indentification for example.  Due to market conditions in the past, the lenders require more documentation than ever before.  I tell buyers lenders will request everything but your DNA!  Be patient through the process, because getting preapproved will put you in better position when shopping for a home.  Sellers will know you are serious and you will have more confidence having a committment from a lender and knowing what you can afford as well as transactional costs.

Buyers Broker of Florida can recommend experienced Mortgage Brokers that will help and educate you throughout the mortgage process.