Working With a Lender
Obtaining financial pre-approved for your loan One of the first things a buyer should do is meet with a lender or mortgage broker to get pre-approved for a loan. Pre-approval is different from pre-qualified. Pre-qualification is a rough estimate of how much you can borrow. Getting pre-approved before shopping for a home saves you time from developing an interest in homes outside of your qualification range, and allows you time to select the best loan package available without the pressure of a deadline.
Pre-approval involves an application process and provides you with a formal commitment from a lender stating how much you can borrow and at what rate. Then the lender will provide you with a pre-approval letter. For an offer to be seriously considered by a seller in today’s market, a pre-approval letter must accompany an offer. It’s an assurance to the seller that you are a serious buyer. The pre-approval process is relatively easy, and the lender will obtain information about income, employment, credit score, and assets. There are a variety of loan options, and your lender will work closely with you to determine which one is the best one for you. Loan Process Once the loan process has begun, it’s best to keep a rein on your finances. Don’t apply for new credit, make a large purchase such as furniture or a car or close credit accounts. Also, best to stay current on any existing accounts.
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