I’d like to start by introducing myself as a new contributor to The Northport Patch. My name is Michael Vassallo and I am a Licensed Mortgage Banker with Financial Equities Mortgage Bankers, specializing in residential home loans. My family and I are new to the community and I am looking forward to becoming involved here, and keeping everyone updated with what’s new in the mortgage industry.
So you are looking to buy a home and you’re asking yourself: Where do I start?
This is a question both first time homebuyers and current homeowners are asking themselves. Over the past few years, the mortgage industry has done a complete 180-degree turn, from a loosely regulated architecture, to a heavily regulated and monitored atmosphere. Guidelines are stricter than ever, underwriters are more cautious, and banks are not just lending to anyone these days. Now, homebuyers have to jump through rings of fire before they’re signing any contracts. However, with interest rates at an all time low, now is the time to be pro-active in regards to first time home ownership and refinancing.
Before you begin searching for a new home, you’ll want to get pre-approved for a mortgage. This just basically means a mortgage lender has verified that you’re approved for a mortgage. In many cases, home sellers and realtors won’t want to work with you without obtaining pre-approval first. In order to be pre-approved banks will require you have two years of tax returns, recent pay stubs, recent bank statements, verification of credit score, and employment history. This will be
more than enough information for your banker to know a certain dollar amount you qualify for over a fixed timeframe, so you can be confident your financing is in place prior to finding your home.
Once you know how much you are approved for, you’ll want to know next which loan programs you qualify for—Conventional, FHA, VA, etc. There are pros and cons to each but depending on your individual situation and goals, your banker will recommend your best option. Once you’ve done this, you’ll have your pre-approval letter in hand, which will show sellers you are capable of buying their home. In today’s market, the issue is not the seller’s ability to get an offer, but whether or not they’ll be able to close the deal with the interested buyer. Agents see preapproved buyers as more valuable as they have been proactive in the process, and when it comes time to make an offer on your dream home, you’ll be in a better position to negotiate!
Guidelines in the industry are changing on a daily basis and my goal is to keep the community updated on the latest news.
Provided by Michael Vassallo (Licensed Mortgage Banker)
For more information 631-806-5569