After falling slightly earlier this summer, pending home sales rebounded and increased last month, according to the National Association of Realtors®.
The upward trend came following a 2.5 percent decline in July. The positive numbers mean that for the last four months, three of them have shown upticks in home sales.
The trends are being experienced nationwide.
If you live in the Fort Collins area, and you’re thinking about buying a home, please read these common misconceptions relating to pre-qualifications. During this real estate climate, it’s important to have a firm understanding of what to expect, especially if it’s your first time buying a home.
“Pre-qualifications are the same as loans.”
This is not true.
Many first-time homebuyers may view this process as equivalent to a loan. In order to get a commitment from a lender, it must rise above a pre-qualification.
Getting approved for a loan is a commitment by the lender that it stands by the borrower’s decision to become a homeowner.
“I don’t need to prepare for pre-qualification.”
First-time homebuyers should take each step of the process seriously because each step is crucial to moving forward.
Being as precise as possible means that the foundations of information are solid. This information goes a long way as the applicant goes from pre-qualification to approved.
When people begin to discuss pre-qualification, they should bring with them pay stubs, tax returns and credit reports to get the ball rolling.
“It’s OK to skew the numbers a tad.”
It’s never permissible to fudge the numbers, even by a bit.
Borrowers should be completely forthright and accurate with their lenders.
If applicants are hesitant about some aspect of their applications, they should bring it up. It’s very possible that the lender can help solve the issues, or it may be something that requires a very little adjustment.
Be honest at every turn of the process so your lender has a complete financial picture.
And borrowers should also keep in mind that it’s never too late to begin good habits. Those who’ve missed a payment can begin to rebuild their record starting now by making payments on time.
“I’m obligated to work with the lender who’s pre-qualified me.”
No, you do not. Just because the lender you’ve worked with has crunched the numbers and provided mortgage details, doesn’t mean you have to sign up with their services.
Most lenders will like you to work with them, but the reality is it’s up to you.
If you work with Element Mortgage, you will have a true partner in the home loan process. One that will take the time to understand your unique financial picture and goals.