pre-approval Archives - Living Room Realty

The Importance Of Getting Pre-Approved | Did You Know?

Posted on March 22, 2024May 1, 2024 by Karim Alaeddine

Hey there, I’m Karim Alaeddine, Principal Broker at Living Room Realty.

Today, we’re diving into an essential step in your home buying journey, something you need to do before you even begin your search, this is getting a pre-approval letter.

So, why is this step so crucial, why does this step need to happen, and how does it serve you to get your ducks in a row now?

Why Is It So Important?

Imagine this…. you’ve found your dream home, the amazing kitchen, the cozy fireplace, a perfect floor plan, everything you’ve been dreaming of…..

But hold on! Before you can make an offer, the seller wants to know if you’re financially capable of buying their home. This is where the pre-approval letter comes in.

A pre-approval letter is like your passport to the world of home buying. It shows sellers that you’re serious and financially prepared to make an offer. Without it, you’re essentially saying to the sellers “just trust me… i got this.” Sellers want assurances that their prospective buyer can and will follow through.

Clarity & Confidence

But it’s not just about impressing sellers. A pre-approval letter also gives you clarity and confidence in your home buying journey. It helps you understand your budget, set realistic expectations, and focus your search on homes you can actually afford.

By getting pre-approved, you’ll save yourself time and frustration by avoiding homes that are out of your price range. Plus, when you do find the perfect home, you’ll be ready to make a confident offer in a timely manner, knowing that you’re already approved for financing.

So, before you start browsing listings and scheduling showings, take the time to get pre-approved. It’s a small step that can make a huge difference in your home buying journey. You will be thanking yourself later.

Make A Move

Are you ready to make a move? Call your agent today. We would love to help you find your next Living Room.

Did You Know?

Ready to level up your home buying knowledge? Delve into our “Did You Know?” series where we unpack essentials of the real estate process. From decoding home inspections to demystifying mortgages, we’re here to make your journey seamless. Explore more insightful tips tailored for your home buying adventure. Let’s make your real estate dreams a reality!

Did You Know – Building Your Home Buying Team

Posted on March 21, 2024May 1, 2024 by Karim Alaeddine

Hey there, I’m Karim Alaeddine, Principal Broker at Living Room Realty.

Today, we’re discussing your home buying team, which consists of your lender of choice and your trusted realtor. So, what makes these two players so crucial in your quest for that unique home, that Living Room of your own?

Pre-Approval

Let’s first talk about the lender and the importance of the somewhat magical pre-approval letter. This document is your golden ticket in a competitive housing market. It establishes your commitment, and potential, to become a homeowner. It shows sellers that you’re not just serious, but financially capable of buying a home.

If you’re not familiar with who you’d like to use as your lender, talk with your agent. Most agents have a roster of trusted lenders they can recommend.

With a pre-approval letter in hand, you can confidently make offers, knowing your own boundaries and budget. And this helps your realtor tailor your home search to real and achievable options for you, saving time and energy. And critically, this self awareness builds the foundation for strong negotiations when making offers.

Finding The Right Agent For You

Now, let’s talk about your real estate agent. Beyond just finding & showing you homes, your realtor is your strategic partner on this journey. They’re your advocate and a knowledgeable touring partner who helps evaluate properties, potential, risks, and opportunities.

When that fateful day arrives and it’s time to write an offer on the home of your dreams, your realtor’s fiduciary duty and experience in the market will be the backbone for negotiating on your behalf.

Beginning with educating you on the nuances of purchase contracts and contingencies, guiding you through the complexities of crafting a winning offer strategy tailored to current market conditions, and seamlessly managing the transactional flow – including inspections, appraisals, timelines, and necessary documentation – your realtor remains an unwavering presence at every stage of the process.

So, whether you’re just starting to explore the market or you’re ready to make that leap into homeownership, remember to assemble your dream team: a trusted lender armed with a pre-approval letter and a savvy realtor by your side. Together, we’ll turn your homeownership dreams into reality.

Make A Move

Ready to make a move? Call your agent today. We would love to help you find your next Living Room.

Did You Know?

Buyers, Are You Ready? Get Pre-approved before you shop!

Posted on March 6, 2021 by Aryne + Dulcinea

It has always been a good idea to get pre-approved for financing by your lender before you step foot into the housing market, but today it is even more important.

Two reasons:

1. Covid-19 safety guidelines require pre-approval before you go into a listing. While not every listing agent upholds this, many do.

2. This market is HOT right now, and you want to be ready to pounce when you see the house. Even if you are just getting started, don’t get held up on the lending side and lose out on a home.

About Us:
Over the course of their professional partnership, Aryne + Dulcinea have helped over 200 clients prosper in their new lives. During this time, they have prided themselves in their top-notch selling abilities, with homes outperforming market standards, consistently exceeding list price while most of their listings sell in under 7 days. Whether you’re looking to buy or sell, Aryne & Dulcinea will work in collaboration to guide you in investing in your future and reaching your real estate goals.

Stop Wondering What Your Budget Is & Get Pre-Approved!

Posted on June 26, 2019 by Carrie Struss

I have met with three new buyers this week all just starting out on their home buying journey. They all want to know, where do we start??

In the Portland market and many markets throughout the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show that you are serious about buying your dream home is to get pre-approved for a mortgage before starting your search.

Even if you are not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantagesof working with a local real estate professional is that many have relationships with lenders who will be able to help you through this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

Capacity: Your current and future ability to make your payments
Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
Collateral: The home, or type of home, that you would like to purchase
Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Please reach out and contact me today to get you in touch with my preferred lender!

Bottom Line

Many potential homebuyers overestimate the down payment and credit scores necessary to qualify for a mortgage. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so today.

First Time Buyers Fall in Love with Lents Farmhouse

Posted on April 8, 2019 by Mel Marzahl

Starting their Search

When first time buyers Adina and Caitlin started their search they wanted a condo. They were tired of living in a rental where the landlord didn’t keep up with repairs. So, they thought the convenience of not having to maintain the exterior possibly having a gym would be great. Starting their search Adina and Caitlin really wanted to find something affordable and start building equity. Their plan was to eventually, in 5-10 years, buy the big family house they really wanted.

The Problem with Condos

Many first time buyers have a similar story. They start out looking at condos because of the lower price. It makes sense at first, the low price, the ease of upkeep. It’s not until they talk with their agent and lender that they start factoring in the high cost of HOA dues and realize how the HOA costs affect their approval price. Once they realize the big impact those high HOAs have on their price, they consider widening their search to include other types of homes.

Financing Tip: Even condo listed at 280 may have a HOA payment of $400/month or so. This means a buyer putting roughly 5% down would need to be pre-approved for 360-375 to actually qualify to buy it.

Change of Plans

This is predicament Adina and Caitlin found themselves in. They liked the idea of a condo for the ease of maintenance, but they realized they could pay the same amount monthly to buy a great starter home instead. When we opened up their search to include single family homes there were so many more options. In their price point some houses needed major repairs but they wanted something they could live in, and slowly fix up. A complete remodel is not in the cards for most first time buyers. We searched all over SE Portland and looked at every 2bd 700 sqft bungalow on the market, until this big, blue, beauty popped up!

The Happy Ending

They widened their search just a bit more. Including a few areas they hadn’t originally considered, like Lents. The house they found is a beautiful, 4bd, 3 story, neon blue farmhouse. It has a front porch made for a swing and summer evening hangouts. This house checked all their “must have” boxes, and more. The main floor was fixed up enough, they could move in, enjoy it but make changes slowly. It has a basement for an art studio, a big lot for gardening, and a whole upstairs level with two bedrooms, a sitting area, and space to add a bath and kitchenette.

Adina and Caitlin got everything they wanted 5-10 years from now, today. Their new house is a beauty that lives well for them in terms of style and financially. They plan to rent the private top level to travelling nurses for some help on the mortgage. After they start a family they’ll have room to grow for the kiddos. They will be the first to tell their friends to consider all their options when searching for a home. Because they know better than most that you might go from looking at 2bd condos in Multnomah Village or Lake Oswego, to 4bd farmhouses in Lents in a matter of a month or so.

CONGRATS on your first home Adina and Caitlin!