What,Does,Pre-Approval,Means,b business, insurance What Does Pre-Approval Means?


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As a buyer, you are excited because you have a pre-approval letter, but what does it mean.  The pre-approval looks at your income to debt ratio true enough; however, are you aware that all your debt is not concerned.  What debt you ask?  The light bill, water bill, phone bill, grocery bill, cable bill, clothing bill, etc.  That may be depending on where you live a lot of money and depending on your taste. Now that puts the pre-approval letter into a new prospect doesn't it.  Don't get discourage.  Just do your homework.  Buy where you are alright comfortable and be patience.  With this market being a buyer's market, you will find a home that is in that comfortable range.Next, you must determine what type of loan you have an adjustable rate, a fixed rate.  The difference is that the adjustable rate will do what adjust and alot of time it is not down, but up.  If you choice the adjustable rate, find out what the maximum rate is and determine whether you can afford the adjustment.  The mortgage and your realtor can show the difference in payment.  The fixed rate is just that fix.  The rate will stay the same for the life of the loan.Now, what can change besides your rate is the taxes and insurance.  With the taxes, you can head off this change by filing for your homestead and mortgage exemptions.  By the way, these exemptions are only for your primary residence, the one you live in.  You can file for these exemptions within 30 days of closing that should be long enough for the title company to get the property in your name.With the insurance, the premium that you pay when you purchased your home may change by renewal, so three months prior to your renewal call your agent to see what your new premium will be.  Your renewal will be the anniversary of the day you purchased the home.  If the premium goes up more than $100 dollars start shopping.  Now keep in mind your credit now influence your insurance premium and any claims.  Your present agent can make some adjustment to your present policy to decrease the premium and it may be worth asking before moving to another company.  The insurance agent can adjust your replacement cost.  What is replacement cost.  Replacement cost is the cost it will take to rebuild your home.  With the adjustment of the replacement, you and your insurance must keep in mind the mortgage that you owe.  The replacement cost adjustment must be able to pay off your present mortgage, and hopefully enough to build your home but in most cases it will be enough to start.  Please consider these facts when you are looking at your pre-approval letter and smiling ear to ear with joy. Written by Serena Brownhttp://www.taylorbrownrealestatetalks.com

What,Does,Pre-Approval,Means,b

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