Getting a Legitimate Lender and Getting
Pre-Approved
It used to be
that buyers could go house shopping and when
they have found their dream home, then they
go to get pre-approved. However, in today's
market, that has proven to be one of the
least effective methods in landing the dream
home.
Most lenders can pre-qualify you for a
mortgage over the phone. Based on general
questions about your income, debt, assets,
and credit history, lenders can estimate how
much mortgage you qualify for. However,
being pre-qualified and pre-approved are
different things. Pre-approval means that
you have applied for a mortgage; you have
filled out the mortgage application,
received your credit report, and verified
your employment, assets, etc. When you are
pre-approved, you know exactly what the
maximum loan amount will be.
A pre-qualified letter is not verified and
in essence, does not count for much if you
are competing with other buyers who are
pre-approved. When you are pre-approved, you
and the seller know exactly how much house
you can afford. It gives you credibility as
an interested buyer and lets the seller know
immediately that you will qualify for a loan
to buy their property.
In addition to being pre-approved, it's
important to be pre-approved with a
legitimate lender. Legitimate lenders
include: banks, mortgage bankers, credit
unions, savings and loan associations,
mortgage brokers, and online lenders.
Some lenders to avoid: those who lose a form
or misplace a file, those who gather
information from you in an unorganized
manner, those who are not informed about
interest rates, points or costs, and those
who cannot provide you with the right
information.
Buyer's Tips
Avoiding Financial Stress -
Use a Buyers Agent -
Don't Make Major Credit Card Purchases -
Be Careful of the "Dual Agent" -
Finding the Right Seller -
Importance of Inspection -
Getting a Legitimate Lender -
Be Wary About the Listing Agent -
Hot, Normal and Cold Markets -
Build a Plan of Action and Get Ready
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