YES!  Having an approval letter from a reputable and (preferably local) lender is one huge step closer to buying the home of your dreams.  A Lender provides an approval lender after they have evaluated and confirm your employment history, annual income, taxes, credit score and credit history.  Upon evaluation of these points, a lender can render an approval letter marking the financial boundaries to follow in your home search.

Sellers are also more willing to work with a buyer who knows they are well-qualified to negotiate a transaction.

The credit score needed to qualify for a loan varies with each loan type and what the economy is doing.  An FHA loan may accept a credit score in the mid 600’s.  .

A conventional loan may require a credit score in the 700’s.

The higher the credit score the better the terms of a loan that a buyer can attain.

YES! A written offer will stipulate what each party is willing to accept and/or cede in the transaction.  It will also define any contingencies the contract has and what dealines each party needs to honor.

An Agreement to Represent is a document that stipulates the type of representation a buyer, seller, landlord or tenant agree to have with a broker.  It outlines what each party to the agreement is responsible for, the date the agreement begins and ends.  It is a binding agreement that also indicates what fees, if any, the client is responsible for.

The amount of down payment needed to buy a home varies with each loan. You do not need 20% down payment to buy. Any Down payment below 20%, will/may have MORTGAGE INSURANCE.

Mortgage insurance is a protective measure lenders put on a loan when a borrower has a down payment lower than 20%.  This insurance pays the lender a portion of the principal in the event borrower stops making mortgage payments. The BORROWER is still responsible for the loan, and can lose the home in foreclosure if they fall too far behind with their payments.