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.
We found Friend Wells knowledgeable, and eager to show us many possible homes until we finally found just the right home for us. He also saved us a couple of thousand dollars in the negotiation
process! Most of all, it was a great relief to know that he is a man of character, so we could be confident that he was doing his utmost to help us and not looking out for anyone else's interests. I have
complete confidence in his integrity.Rick & Linda T
* Fee varies for homes over 250K. Call for details. 6% used for comparison purposes only. Commissions may be negotiable and are not established by law. Each Office Independently Owned & Operated. The information herein is deemed to be accurate but not guaranteed. All information to be verified.