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Article Title: Buying A Home - Don't Let Your Pre-Qualification Letter Keep You 
From Your Dream Home
Author: Sarah P. Shimanski
Category: Buying, Mortgage, Personal Finance
Word Count: 432
Keywords: buying a home
Author's Email Address: [email protected]
Article Source: http://www.distributeyourarticles.com
------------------ ARTICLE START ------------------

If you've had some experience going through the home buying process, you're 
familiar with the advice of Realtors to obtain a pre-qualification with a 
lender to know how much home you can afford.  It seems like most sellers won't 
give you the time of day unless you can show proof you're a serious homebuyer.  
The reality is, how much home you can qualify for depends on you.

There are several variables that can affect how much house you can afford.  Are 
you able to raise your monthly income?  Can you eliminate unnecessary expenses? 
 What kind of financing alternatives are you planning to use?  Can you qualify 
for a first time buyer program?  Are there special financing bonuses the 
builders offering?  Are you planning to use family and friends is a source of 
funds?  Does the property you're considering have income potential?  Will you 
be renting any rooms up?  The list goes on and on.

The amount of home you can qualify for hinges mostly on your answer to these 
questions and many others.  As you search for homes, try to locate a real 
estate agent or loan agent experienced in negotiating and packaging complex 
deals.  It's best you don't rely solely on standard fill-in-the blank 
pre-approvals or computer generated approvals.  Depending on the available 
combination of lender and seller, there are several ways to buy a home.

Pre-qualifying with a particular bank only gives a ballpark estimate of how 
much home you can afford when you use their financing.  It can't reveal all the 
alternative financing options available to you.  You can determine what your 
possibilities are only by spending time researching and negotiating all the 
available options.

When you are pre-qualified with a bank, it shows how much you can borrow based 
on information you supplied.  The pre-qualification won't guarantee the bank 
will actually make you a loan.

Only a pre- approval will show a banks' willingness to loan you the money.  
Most lenders will pre-approve you for a certain limit-even if you haven't 
started looking.  One main advantage of having a pre-approval letter is real 
estate agents and sellers will take you seriously because they'll know you 
won't have any problems satisfying the loan contingency.

However, like pre-qualifying, there are several factors that can affect your 
borrowing limit such as the lender, mortgage program, interest rates, and your 
credit history.  Be aware a particular pre-approval only provides you with a 
limited snapshot of your borrowing capabilities.  Also your pre-approval does 
not guarantee you'll actually get the loan.  The lender must check all of your 
information and verify that you and the property will fulfill other deadlines.

Looking for an Orange County starter home? Then check out these Yorba Linda 
homes for sale at 
http://localyorbalindarealtors.com/yorba-linda-homes-for-sale-fixer-uppers-you-want-to-avoid/.
  For a listing of local Yorba Linda Realtors, visit 
http://www.localyorbalindarealtors.com
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