Getting a Legitimate 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.
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.
Still have questions? Contact me today for a
free consultation!
free consultation!
Colin O’Neal
Buyer’s Agent
200 North Rufe Snow Drive, Ste.102
Keller, TX 76248
(817) 898-0145 Office
(817) 898-1771 Fax
colin@househuntersdfw.com
Buyer’s Agent
200 North Rufe Snow Drive, Ste.102
Keller, TX 76248
(817) 898-0145 Office
(817) 898-1771 Fax
colin@househuntersdfw.com
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financing.
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