Although most sellers and purchasers would agree that “Cash is King”, most purchasers do not have enough liquid assets (cash) to purchase a home outright. Whether you are interested in purchasing Ulster County real estate or real estate in any other county of New York State, the majority of purchasers must obtain financing from a lender backed up by a mortgage on the property. I think most real estate agents will back me up when I say that obtaining a mortgage is the largest part of the entire process of purchasing a home.
To put the sellers mind at ease, most purchasers, at the advise of their real estate broker, will get pre-qualified for a mortgage. Obtaining a pre-qualification for a mortgage is not the same as obtaining a pre-approval, but just what is the difference? A mortgage pre-qualification is generally a letter from a lending institution or mortgage broker stating that according to the data you have supplied, such as your income, assets, liabilities and credit score, you fall within the perimeters of obtaining a mortgage for up to a specific amount. The pre-qualification letter is not a guarantee that you will be approved for a loan since all the necessary verification and paperwork has not yet been done. However, when you get a pre-approval for a mortgage, you actually go through the approval process and submit the necessary verification. As a purchaser, if you get a pre-approval prior to making your offer, it will not only show the seller just how serious a buyer you are, but it will put the seller at ease knowing that there are no variables left in the mortgage application process other than the house appraisal. That can give a buyer a competitive edge when making an offer and speed up the process considerably.
Whether you choose to get a mortgage pre-qualification or a mortgage pre-approval, you should talk with a loan officer who will go over the fees and particulars with you. Remember each will only be valid for a certain amount of time before becoming outdated. So, when you start zoning in on your dream home, talk to your real estate broker to determine which may be the best option for you before you get ready to make an offer to purchase your Ulster County real estate. It will be well worth your time!