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.
Watch out for retail lenders with teaser rates on their websites charging a point (1% of the loan amount) to do their loan plus charging a "discount" (fee) to do the loan. They say they'll waive the discount if you take a higher interest rate.
My spouse, Lisa, has been doing loans since 2007 as a mortgage broker. She has access to numerous lenders who accept different credit, income, and home conditions, at wholesale rates. She is happy to give you a no-cost, no-obligation look at your credit score and financial scenario as well as a pre-approval letter stating your loan qualification, again, a no-obligation service she provides to clients. You can get to know her and her integrity and service level, and choose whether or not to use her for the loan. Please email Lisa or call her direct: 951-704-4559. Or click on the below to link to her blog on Activerain:
"Sand to Sea Properties, Inc. provided stellar customer service from beginning to end. Throughout the entire process Frank and Lisa guided us and were always available to answer any question or concern, and were prepared for any curve ball throughout the home buying process. Their expertise in real estate became such a comfort to know we were working with top notch individuals who were not just incredible at what they do, but also enjoyable to be around. We highly recommend Sand to Sea Properties for your home buying or rental needs."
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