Finding a Trust-Worthy Lender and Getting Pre-Approved
In the past, it seemed that financing was a foregone conclusion. If a buyer had the money to make a home payment, they could get pre-approved for the loan. Unfortunately some who couldn’t pay also were being approved. Buyers would look at homes they felt they could afford, and then go and get pre-approved, only when they’d decided which home to move on. 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. It is also important to note that some lenders will give approvals and then fall through. Be sure to ask your REALTOR what their experience has been with any lender before using them.
Home | Company | About Us | Our Old Blog | About Howard Hanna | Career Opportunities | Chautauqua County Real Estate News/Blog | Staff | Documents | Dream Home Finder | Mortgage Rates | Buyers | Relocating | School District Info | School Websites | Community Info | Open Houses | Search Homes | Advanced Search | Map Search | Newest Listings | Commercial Search | HuntingProperties | Money Back Guarantee | Sellers Rentals | Vacation Rentals | Our Agents | Offices | Fredonia Office | Peek'n Peak Real Estate | Mayville Office | Lakewood Jamestown | Hanna Pets | Lake Chautauqua Property
©2024, Chautauqua County Board of REALTORS®. All rights reserved.
The data relating to real estate on this web site comes in part from the Internet Data Exchange ("IDX") Program of NYSAML's. Real estate listings held by brokerage firms other than Howard Hanna Holt are marked with the IDX logo and detailed information about them includes the name of the listing brokers. Information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties that consumers may be interested in purchasing. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change, or withdrawal. Neither the listing broker(s) nor Howard Hanna Holt shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless CNYIS, UNYREIS, WNYREIS.
Information last updated on 2024-03-28 06:30:16.