The importance of a
PRE-APPROVAL
IN TODAY’S MARKET
This report provided by: Kathren Rosales Branch Manager
Direct: 808-250-7077
NMLS: 66260
krosales@afncorp.com
Fax: 909-662-3980
AFN NMLS: 237341
Located at the: Kihei Technology Park | 535 Lipoa Parkway, #199B, Kihei, HI 96753 | Branch NMLS #1431981 *Brokered products may have higher rates or different terms. Please contact loan professional for more details. American Financial Network, Inc. is licensed by the Hawaii Mortgage Loan Originator Company Branch License (HI-1431981) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 1431981. Refer to www. nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This information is intended to assist Real Estate Brokers, Agents, and other Industry Professionals, and is not an advertisement for consumer credit as defined in 12 CFR 1026.2(a)(2). This information is not intended for consumers and may not be duplicated or disseminated to the public.
PRE-QUALIFICATION VS. PRE-APPROVAL What is a pre-approval? Pre-Approval is a detailed, high-resolution, picture of your credit worthiness verified by a full review of your income and assets by an AFN Mortgage Underwriter. All that’s left for final approval is a satisfactory appraisal, title search and no change in your financial condition prior to closing. Going through the pre-approval process helps prevent last-minute issues arising throughout the loan process. A pre-approval from AFN puts you and the seller at ease knowing you are financially capable of following through with the purchase of the home.
What is a pre-qualification? A pre-qualification is a snapshot, a quick review of your income and assets, that provides an estimate of how much house you might afford. While neither a pre-qualification nor pre-approval is a guarantee you have a loan, a prequalification doesn’t provide any real peace of mind since it is based on estimates and unverified information.
IMPORTANCE OF A PRE-APPROVAL An income based pre-approval from AFN offers a number of advantages that will make your search easier and negotiations more effective when you’re ready to make an offer. A pre-approval takes into account your income, debt and credit history to determine how much the lender is willing to loan you.
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Finding the right home at the right price begins with knowing what you can afford. A pre-approval based on your income and expenses gives you the home buying budget you need.
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With a pre-approval in hand you can shop with the confidence of a cash buyer for your new home.
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Your pre-approval will provide your real estate agent with the financial information they need to focus your search on homes that you can afford, saving you both valuable time.
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With pre-approval you’re able to make an immediate offer the seller will take seriously in a a highly competitive real estate market.
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The sooner you close, the sooner you can move in. Pre-approval means your loan application is already in process. Once your offer is accepted you and the seller can expect to save time and close the deal quickly.
How do you receive a pre-approval letter? It’s as easy as 1-2-3. 1. You and I will discuss which loan program best suits your needs. 2. Complete the online application on my website, taking care to complete all required fields and provide any additional information you have available. 3. An AFN Underwriter will review your information; if you meet the criteria, we’ll send you a preapproval letter!
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THE HOME BUYING PROCESS
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Pre-Approval
Begin Your Search
Now that you’ve chosen a lender and received your pre-approval letter, you are ready to select a Realtor and begin your home search.
Knowing what you’re looking for is critical when shopping for a home. Consider price, location, features, and style. Review your wish list with your Realtor and refine it as you begin looking at properties. Don’t forget to think about future, as well as current needs.
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Selecting a Realtor To make the most of your search, you’ll want an experienced Realtor who knows the local market well. I’m more than happy to refer you to a trusted partner.
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Provide Required Documentation I’ll provide you with a checklist of documents needed to approve your loan. Once I have these documents, I will submit them along with your loan application to our underwriters for final review and approval.
5 Lock in Your Rate & Select a Loan Program I will lock in your interest rate, so it won’t increase, for up to sixty days and review your unique needs and circumstances to determine the loan program that’s right for you.
Sign Purchase/Sales Agreement
Make an Offer When you find a home that meets all your requirements, it’s time to make an offer. Before you and your Realtor submit it to the seller, I ask that you share it with me as well.
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Loan Approval I will notify you just as soon as your loan is approved. We will determine a location, time and date for your loan closing.
Once your offer is accepted by the seller and you’ve received the results of the home inspection, you’ll be asked to sign a Purchase and Sales agreement and put down a deposit.
8 Home Inspection, Appraisal & Title Search Get a certified home inspection, and send me a copy of the report before signing a purchase agreement. A certified appraiser will determine the value of the home and a title search will be done to ensure there are no outstanding liens on the property.
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10 Walk Through and Settlement Before closing the loan, you will have a home walk through to confirm that any agreed upon fixes have been completed and the house has been left “broom clean.” At the Settlement, the attending attorney will review with you and have you sign all necessary loan documents. I will see to it that funding is provided and the seller will give you the keys to your new home.
THE LOAN PROCESS
PRE-APPROVAL OVERVIEW A Pre-Approval Gets You One Step Closer To Your Dream Home! Once you are pre-approved, you can make an offer with confidence. To summarize, here’s what you get with a pre-approval that you won’t get with a pre-qualification.
Shop With Confidence Knowing the specific loan amount you are approved for through a lender allows you to search within your price range.
Fewer Obstacles With a pre-approval in hand, you have the first step in financing your home out of the way, allowing you to focus on finding the perfect home. Once you find that perfect home, the preapproval also reduces the possibility of losing the home due to obstacles that may arise throughout the loan process (that can be taken care of during the pre-approval process).
Credibility Your pre-approval lets the seller know you are financially capable of purchasing the home and following through on your offer. Being a pre-approved buyer in a multiple offer situation could make you stand out above the rest.
AFN NMLS: 237341
Contact me today for more information! Kathren Rosales Branch Manager
Direct: 808-250-7077
Located at the:
Fax: 909-662-3980
Kihei Technology Park
NMLS: 66260
krosales@afncorp.com
535 Lipoa Parkway, #199B
Branch NMLS: 1431981
Kihei, HI 96753
*Brokered products may have higher rates or different terms. Please contact loan professional for more details. American Financial Network, Inc. is licensed by the Hawaii Mortgage Loan Originator Company Branch License (HI-1431981) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 1431981. Refer to www. nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This information is intended to assist Real Estate Brokers, Agents, and other Industry Professionals, and is not an advertisement for consumer credit as defined in 12 CFR 1026.2(a)(2). This information is not intended for consumers and may not be duplicated or disseminated to the public.