How do you get a pre approval letter?   This is a great question!   You can contact the institution you bank with or you can call a mortgage broker who looks for the best loan package for your situation.   In either case they will need the following documents:

1. Personal information, names, addresses, dates of birth, social security numbers; this enables them to pull your credit.
2. Employment and income which is usually done through pay stubs, but if you are self employed a tax return will work.
3. A summary of your liquid assets such as savings, checking, investment accounts.

The loan officer will also want to meet with you to discuss your goals.   Maybe you  have cash but you want to preserve it and so a 3.5% down program would work best for you.   Maybe you are very debt adverse and so a 15 year mortgage appeals.   Maybe you want to have the lowest possible payment  long term so buying the rate down would be helpful.   Or maybe you want to avoid PMI insurance and so putting as much cash down makes the most sense for you.

Many buyers feel that pulling their credit is a bad thing.   If you are having your credit pulled for a mortgage, a car purchase, a credit card, etc…that could be detrimental.   But just pulling for a mortgage is inconsequential.   Any pulls of credit for this purpose is reset after 60 to 90 days.

One tip I tell my buyers is to only put the address of the home you are considering in the pre approval letter.   This guards your information in the negotiation process.   For example, you wouldn’t want to bid $140,000 on a $155,000 home and then have the pre approval letter say that you are approved for $155,000.   That is inviting the seller to counter you!

If you have questions about the buying process, I hold a first time home buyer class in Fishers every month.   I have a lender, a home inspector and myself talk about questions like these to educate buyers before they begin the process.   You may not be ready to buy for several months, but it might be good to come to the class to understand what things you will need to have in place to make the process easier and ensure you get the house you want.   The first time buyer class does require registration, but it is free!

In addition if you think you have credit issues, I am part of a group that is having a seminar on FICO Scoring 101.   You will be able to learn how short sales, foreclosures and bankruptcies affect your credit score; the best way to handle debts and collections, ways to rebuild credit in record time.   Contact me directly for more information on the FICO class.   It is free!

Have other questions about buying a home in Fishers, check out our Top 10 Buyers Questions to see if we answered yours!

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Other Northside Blogs (Carmel, Noblesville, and Geist)

 Cindy œin Indy Marchant  - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775

The post Fishers Real Estate Agent explains Pre Approval Process appeared first on Marchant Team.

Many of you reading have probably read a little bit about  this Fishers Realtor  and know that I was an Accountant turned Realtor in 2001.   As an Accountant, equity is an important concept to understand.  

Equity is the difference between the assets of  the company (cash, receivables, equipment, etc) and the liabilities of the company (the payables, notes, etc).   Without getting into Income Statements and Balance Sheets…if equity is positive it is good, if it is negative it is bad.

This holds true in Real Estate too.   Negative equity in a nutshell is when what you owe on the home is more than it is worth.   For example, you home is worth $120,000 but you owe $125,000.

Negative Equity can be caused by many situations:

1. Person  bought at the height of the market (say 2005) and the market has now declined.
2. The area the  person bought in has “shifted” and is less desirable.   This could be due to bank owned or short sale homes in the neighborhood.
3. There is new construction that is not yet completed and the builders are discounting the new builds to prices below what they were when the  person bought it.
4. Person  purchased the home with zero down and needs to move within 2-3 years, so there is not enough time to gain equity.
5. Person has to pay “selling fees” and with taxes paid in arrears in Indiana, Title Insurance and Commissions it forces them into negative equity.

People in negative equity situations can still sell their homes without damaging their credit.   There are hardships that are obvious like medical or job loss, but there are other hardships like job transfers or market conditions that may qualify for a short sale.   Short sales are much better than a full blown foreclosure.  

You need a Certified Distressed Property Expert (CDPE) to evaluate your situation and if it looks like it could qualify, help you gather the paperwork and submit it to the lender for consideration.   Where do you find a CDPE; right here!   Email me and I’ll connect you with the CDPE on our team.

Search homes for sale in Fishers by Neighborhood

Other Northside Blogs (Carmel, Noblesville, and Geist)

 Cindy œin Indy Marchant  - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775

The post Fishers Realtor explains Negative Equity appeared first on Marchant Team.