Why Do I Need to Get Pre-Approved For A Mortgage Before Looking At Homes?
Posted by Andrew Palumbo on
“Why do I need to get Pre-Approved?” is a question we get asked almost every day at My NC Homes when we speak with perspective home buyers. Some tell us "I went online and know I’m qualified". While that might be the case, it's important to understand the differences between Pre-Qualification and Pre-Approval when it comes to the mortgage process.
The Differences Between Pre-Qualification & Pre-Approval
Two often confused terms in the home buying process are a mortgage pre-qualification and a mortgage pre-approval. Even some loan officers and real estate agents will use the terms incorrectly or may not fully understand the difference between the two. If you are looking to buy a home in the Durham/Chapel Hill/Cary area it is critical that you get…
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as the fuel for the furnace. This heating oil was usually stored in underground storage tanks (USTs) near the homes. Oil trucks would come to the homes and top off the USTs periodically during the winter months.
If you are planning to purchase a new home, you will need to find out if the house is in a homeowner association. As a buyer, you will have to sign documents agreeing to be a member of the association and to abide by the association’s rules. Condominiums and townhomes have additional considerations which are addressed here.
Significant new mortgage rules just went into effect on October 3rd, as part of the regulations created by the Consumer Financial Protection Bureau in 2013. These regulations are designed to provide new homeowners increased loan transparency as well as more protection against reckless lending standards and other lender abuses.
If you are planning on buying or selling a home in North Carolina, you are required to sign a disclosure statement that in theory details all known problems with the house. The disclosure statement must be on the form provided by the state. No other disclosure form is allowed.
Many real estate contracts these days contain “as is” clauses. The term “as is” is a signal that the seller makes no warranty as to the condition of the property and intends to make no repairs to the property prior to or after closing. It also often means that the seller will give no credits against the price for needed repairs. Foreclosure sales are almost always “as is” sales, since the banks that own the homes don’t want to put any more money into the properties. While I generally don’t recommend foreclosure deals, as-is property can be a good deal at the right price point if the buyer has sufficient cash reserves and/or the ability to handle any needed repairs.
Here are six myths and urban legends about buying and selling a home. We hear these from buyers and sellers every now and then.
If you are buying a home in a Flood plain there are a number of things you should know. Flood insurance rates are currently at some of the highest in history. In 2012, the U.S. Congress passed a law phasing out many of the available subsidies for homes in flood plains and allowing insurance companies to substantially increase rates year over year. In 2014, Congress passed a new version of the law aimed at reducing the previous likelihood of major increases and reinstating some of the subsidies.