MORTGAGE TIMES HAVE CHANGED

Now that we've experienced the fallout from the subprime lending disaster in the Houston real estate market, there is no longer such a thing as "easy money." Now you need perhaps ten to fifteen percent down, an excellent credit record and verifiable proof of income when you apply for financing.

One reason for all this scrutiny is that many lenders sell their loans on the secondary mortgage market, and they are using required (and automated) software to factor in all the variables in the equation that results in a thumbs up or a thumbs down. In other words, it's not quite as personal as it used to be.

Save yourself time, stress and heartbreak by seeking preapproval for financing before you even look at House One. I say preapproval and not prequalification,because prequalification is only an estimate of the loan amount for which you might qualify once your application has been fully reviewed.

Preapproval puts you in the driver's seat with sellers, because it means that you have already basically applied for financing with your credit report, verified income, and proven ability to make a respectable down payment. Preapproval goes several steps beyond prequalification, and gives you the best indication of how much home you can afford.

Maximize the time spent on your Houston home search by taking the all-important step of seeking financing first. Then make your offer with confidence!

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To learn more about the overall Houston real estate market or Houston homes for sale, please visit our website.

Mark W. Martin is President of 2M Realty, a Texas Real Estate Broker and Houston Realtor. He develops land in north Houston, and more specifically the Porter real estate, Conroe real estate, Humble real estate and Kingwood real estate markets.