I Need a Pre-Approval Letter

We have favorite lenders we love and believe to provide a great experience to our clients, but we always like to encourage folks to do their own research so the decision is one backed with research and education, and not one involving pressure to use someone (in our opinion, a conflict of interest potentially). Check reviews online, get referrals from friends that have ACTUAL experience with the person, be ready to ask the tough questions that are important to you. Some folks like to use their credit union, a bank they have worked with for years, and some prefer the service of a mortgage broker. 

Our only wish by referring someone is that you have a positive experience both financially and emotionally through the journey of acquiring your next house to call home. 

Now that we’re past the “disclosure” language, if you would like a few names of folks we like for loans (click here) – there are SO many fabulous lender solutions locally with experience and great service offerings. We can’t list everyone, but we try to list those we have more extensive experience over the last 20+ years that we know how they work and how they handle easy and more challenging files.

Pre-Approval First

A mortgage broker must be the one counseling you on what’s best for you financially or your trusted tax person, but getting your pre-approval in process before you’re heading out to look at homes is a critical part of the process. A: because you want to be looking at homes that make sense for your budget. B. Maximizing your time looking at homes in-person.

How will this affect my credit?

We know the million dollar question is, how does this affect my credit? Ask the lenders if there’s a window of time to do your “loan shopping” and the pro’s and con’s of each variable (time frame, who to talk to, etc). Be transparent with your loan officer on your situation – job wise, purchase wise, tax wise, etc. Be ready with your questions – if you’re about to start a new job, might be buying a new car, tax related questions, and how that can affect your home buying experience. If they’re asking a lot of questions, do know that’s a good thing – they’re doing their homework upfront so you aren’t at the finish line with an unforeseen issue. 

Interview Questions

Feel free to ask us what are good questions to ask your lender … as we can tell you what the biggest issues and it often involves ensuring you understand the appraisal ordering process (if applicable), is this person going to be handing you off to a different party once in contract (communication breakdowns), and how quickly can they “fund your loan” after you have signed as a buyer your final purchase documents right before closing. 

Reminder

To write an offer, you do need to submit with a pre-approval letter and proof of funds (money that you’re putting down for your deposit and at closing). Don’t forget, always assume someone might be downloading your private information – always verify your lender is doing safe practices to protect your sensitive information. When sharing info with your trusted buyer’s agent, be sure that the document has your name and date on it, but black out your account number and possibly current address.

The pre-approval needs to be done before your buyer’s agent can submit your offer. They have an ethical obligation to be doing their part in the process to ensure within reason, that you’re a qualified buyer without invading your privacy.  

Contingent Buyers

Contingent Buyers: if you’re a buyer that needs to sell a home to purchase your next home or believe that is what you’ll need to do – see the video we just did with Dara Delgado, Mortgage Broker covering this topic as a possible solution for you. Do know, we have a lot of success with contingent purchases and we have a lot of feedback on how to successfully navigate this process if you’re unable to keep your home as a rental or do not want to or it doesn’t make sense for your situation to do so, give us a call 916-308-2446