Getting Pre-Approved

Published by julia | Filed under Buyer / Seller Tips, Market Trends, Miscellaneous, Real Estate

Financing a home can be a difficult process if you are not looking for the right loan for you. What you need to be concerned about is not getting the financing, but getting the right financing. You will want to look for the best terms at the lowest cost. If you want to review your financing options, you will need to meet with a lender who can explain al of the different types of loans that you will be able to afford as well as the program that will help you meet your goals. Once you determine with the lender how much you can afford, you will be able to narrow down your housing search to specific neighborhoods.

Once you meet with your loan officer and he has reviews your finances, the officer will let you know what type of mortgage and what the loan amount he thinks that you can qualify for. The lender will then provide a pre-approval letter that shows your borrowing power.

Your pre-approval letter is not a final commitment for the loan, but it is a necessary step in order to look at home’s with an agent. Some require, and some recommend it. It shows that you will have the ability to complete the purchase of a home. Otherwise, agents and sellers could think you are just wasting their time. Sellers do not want to get into the final hours before closing and find out that the buyer cannot get financing.

Also, if you don’t meet in advance with a loan officer, you could be rushed into making a decision about your financing without taking the time to think about what is best for you. It is a strain to try and get a lender and find a loan program once you have already found the house that you want to buy.