Call Scott Gregory NOW at anytime at (850) 501-2574 / http://www.greatpensacola.com/
Loan Pre-Approval: The First Step in Buying a House
In today's market, the first step you must make to buy a home is getting a letter of loan pre-approval from a lender. This should be done before you even get in a car with a Realtor, or begin looking at houses.
Why? Because if this step comes later, several things can happen. You may not know that you can qualify for more of a loan than you think, you may qualify for a lesser amount than you think, or you may need to take some steps to improve your credit to even qualify at all. You don't want to invest time and emotion in homes that cannot meet your needs at this point.
When you have a pre-approval letter, some of the uncertainty that comes with the home-buying process is gone. A pre-approval letter also shows to not only to the seller's agent, but to the seller that you are serious about buying the home, and well qualified to do so. Here are some tips Lisa Scherzer from Smart Money believe can help with approval:
1. Shop for the best lender for you and do it early:
Pre-approval from 3-4 lenders is customary but not more than that because the offers won't necessarily be that different. Do pre-approval before hand so that you know exactly what is your price range before shopping even begins.
2.Have a financial biography assembled:
a. Be prepared to give the lender the following for financial information about you for pre-approval additionally to your credit, income, and assets.
b. W2 statements (or 1099 income statements) for the last two years
c. Federal tax returns for the last two years
d. Bank statements for the last few months
e. Recent pay stubs and proof of other income
f. Proof of investment income
3. Know that you are not tied down to one lender:
Pre-approval doesn't bind to the lender, it is simply the lender saying they are willing to make you the loan. Typically the rate that you are pre-approved at will not be the rate you receive at closing because the interest rates change weekly.
4. Have a watchful eye to your credit score:
Loan inquires can damage your credit score slightly. As long as you find a loan within 30 days, all the the inquiries you made will not affect your score while you are mortgage shopping.
5. Use a REPUTABLE lender:
Sellers like to see lenders that are reputable because they know the lender will deliver on the loan.
6. Be aware of time and dates:
Most pre-approval are only valid for 90 days after issuance. If at 60 days you are still shopping, you should ask the lender to re-validate the approval letter just to be safe.
In more than a decade of working with buyers here in Northwest Florida, we have found that it's a good idea to use a local lender who understands the issues involved in lending in the area. There's a difference between a lender being licensed to do business in Florida, and a lender who has extensive experience writing loans in the area. You want a good deal from your lender, but you also want excellent service.
Buying a home can be a stressful time for anybody. The best way to solve the tension is to hire a Realtor who is knowledgeable and can guide you through the process. That person is Scott Gregory. Scott Gregory has been named a top producer at his Keller Williams Realty Gulf Coast/Keller Williams Realty Pensacola market center every year since 2006. He is the team leader of The Gregory Team, a “mega agent” team that specializes in residential sales and investment properties, and has extensive experience in getting homes sold in a changing market (from regular sales to distressed sales). When you buy or sell with The Gregory Team, you get a full team at your service. He has been full time in real estate since 2000, and holds a degree in communications from University of Illinois Urbana-Champaign. His team can help you buy or sell property anywhere in America. Local market areas include Pensacola, Navarre, Navarre Beach, Pensacola Beach, Gulf Breeze, Milton, Pace, Fort Walton Beach, Mary Esther, Perdido Key, Cantonment and Destin. Referrals are always welcome. Call us now at 850-501-2574 or email togregoryteampensacola@gmail.com.
Comments(2)