Waukesha County Home

HOME MARCH 2018 2 Distributed by: ©2018 by Conley Media Waukesha County Home is published monthly by Conley Media - Waukesha County, 801 N. Barstow St., Waukesha, WI 53186. Contents of this publication may not be reproduced in any form without the written consent of the publisher. A publication of Conley Media Sales Director: Jim Baumgart 262/513-2621 jbaumgart@conleynet.com Editor: Dan Muckelbauer 262/513-2626 dmuck@conleynet.com Production: Patricia Scheel 262/513-2690 pscheel@conleynet.com Home Volume 7 ■ Number 3 ■ March 2018 Unlike a preapproval letter, a prequalification does not hold much weight with lenders or realtors. "Realtors could do that themselves," Bradd said. Besides a fixed-rate mort- gage, there are many types of loans borrowers can choose from, including bridge loans, or short-term loans, loans that do not require a down pay- ment, and construction loans. Helvey said due to a lack of housing inventory, construc- tion loans are popular, as the financing enables buyers to build customized homes on a lot of their choosing. A preapproval is a credit decision. It states that the prospective buyer is approved for a loan subject to finding property. "It shows that you are seri- ous about getting that proper- ty," Helvey said. As the 2018 housing market moves very rapidly due to the internet and other technologi- cal advances, buyers waiting several days for lender pre- approval can easily lose out on choice properties. "People are not patient. We don't have to be," Gallamore said. To save time and frustration, Gallamore recommends com- pleting the preapproval process before shopping around for homes. Preapproval benefits There are many benefits to homebuyers being preap- proved for a loan. ■ As the lender obtains the buyer's credit report during the first stages of the preap- proval process, this gives the buyer a chance to fix any cred- it errors or blemishes before the homebuying process advances. ■ The preapproval process is a good opportunity for bor- rowers to discuss and create a budget, which should include property taxes, home repairs, homeowner's insurance, and other expenses, with their mortgage professional. Brian Carroll, mortgage loan originator at Sunset Bank in Waukesha, said the preap- proval process itself is more important than the actual let- ter, as the process is an oppor- tunity for buyers to get to know their lenders. This is very important because a mortgage is the largest loan commitment many borrowers will make in their lifetimes. Helvey agreed. "A good loan officer will dis- cuss and gauge the customer's comfort level when it comes to borrowing a large amount of money,"Helvey said . Required information Customers are required to submit two of most or all of the following documents to initiate the pre-approval process: paycheck stubs, tax retur ns, W2s, bank account statements and retirement account statements. "I call this 'the five twos,'" Helvey said. The types of documents needed from potential borrow- ers depends on their financial situations. For example, a self- employed person may have to provide business tax returns, and someone recently divorced may have to provide proof of alimony and other paperwork. Carroll said, thanks to tech- nology, the lender can make the pre-approval decision very quickly, sometimes within an hour or two, if the borrower has the proper documents. "We can do it as fast as we have the paperwork," he said. Through the Landmark Credit Union, homebuyers who meet certain qualifica- tions can print out a preap- proval letter instantly from its website, www.landmarkcu. com. This is helpful to buyers who are shopping for homes nights and weekends, when the credit union is closed, Bradd said. She wanted readers to know that the preapproval process costs nothing, and a letter of approval is good for up to 120 days — something prospec- tive homebuyers should con- sider when shopping for a home. Preapproval: Benefits beyond just getting a home Continued from Page 1 (StatePoint) — The chicken or the egg? Which came first continues to fuel philo- sophical debates. But when it comes to buy- ing a home, experts are pretty clear about the proper order of things — agreeing you should fit your mortgage to your finances, not to a house. "Before you even start your search for a home this spring, it's crucial to know how much you can afford to pay each month," said Freddie Mac Senior Vice President Christina Boyle, who stresses that there are a few important things to keep in mind as you calculate this figure. ■ Start by getting a handle on your finances. What do you earn? What do you spend? How much do you have in savings? Answering these questions will help you better understand how much home you can afford. Make a budget and use free online tools and calculators to determine how much you can afford. ■ Remember that your monthly expenses go beyond mortgage pay- ments, so leave some room in your budget. Whether it's a new roof or a leak- ing faucet, homeownership can mean unex- pected expenses. Be prepared to pay for such items, as needed. General mainte- nance, combined with utilities (an expense that can vary by home depending on its size and other factors), are added expenses to consider. Some neighborhoods also have homeowners' association fees to cover the cost of upkeep of common spaces. Your lifestyle can also help you assess whether a particular home is right for you and your budget. Location is key in deter- mining what you can afford. Some points to consider are whether you want to live in a suburban or urban setting, whether you need to be near specific schools and public transportation, and the potential length of your commute. These factors can affect the cost of a home and you should determine your prior- ities in advance of home and mortgage hunting. Remember, getting preapproved can help you act fast and make a confident offer, so talk to your lender now before you start shopping. How much home can you afford this spring? Factors to consider before starting house shopping Pavel Losevsky/stock.Adobe.com Dreaming about your dream home is fine. The question is: Can you afford it?

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