Finding a 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.

4 thoughts on “Finding a Lender and Getting Pre-Approved”

Comments are closed.

landscape, summer, beach
Real Estate Articles
Kurt Thomas

Avoiding Financial Stress

By asking the right questions, and knowing exactly what your needs are, you can find the right loan for you.

Read More»
love, family, swan family
Real Estate Articles
Kurt Thomas

Building Your Action Plan

Building Your Action Plan Buying a home will probably rank as one of the biggest personal investments one can make.

Read More»
squirrel, verifiable kitten, rodent
Real Estate Articles
Kurt Thomas

Who is the Right Seller For You

The best seller is one who is highly motivated. A highly motivated seller is more likely to sell at a price that is less than his or her house is actually worth.

Read More»

Have you checked out our listings?

See what our agents have to offer

Share this Page

Facebook
Twitter
Pinterest
Email
5 Star Realty logo large transparent background
Buying and/or Selling? We're here to help.
Smiley face icon

Thank you!

We usually respond within the hour. We look forward to working with you and will give you the very best client experience. 

share with the world