Now more than ever, buyers need to have that all important initial consultation with the mortgage lender. 

Lending guidelines are changing rapidly, loan programs that were available yesterday are no longer available today, and interest rates are not written in stone.

Lots of first-time homebuyers start out driving around and visiting open houses.  I am still contacted by potential buyers who say they are ready to start looking at homes, but have not met with a lender to discuss financing. 

Meeting with a lender is more than visiting a financial website and using the calculators to see what you can afford.  Mortgage loans and interest rates are credit score driven, and the higher your credit score, the better your interest rate.

When you meet with a local, reputable lender, and complete a mortgage application, the lender can check your credit report.  If you're serious about buying a home, then having your credit pulled is a necessary step (unless you're paying all cash).  For a lot of first-timers, this can be a money saver because the lender may help you identify errors on your credit report, that once corrected can raise your score.

A good lender will also explain several different loan types and after listening to your long and short-term goals, will be able to suggest the best loan.  For some buyers, an interest-only loan is best, for others, the traditional 30-year fixed is the better solution.

You should also receive a Good Faith Estimate of Closing Costs which outlines what the lender will charge to secure your loan.  Be sure to review different scenarios and varying sales prices.  You'll need to know what your price range is that will allow you to stay within your monthly comfort zone for your total housing payment.

And finally, your approval letter is your official GREEN LIGHT to shop for a home. An approval letter or a mortgage application does not bind you to any lender, nor does it obligate you to purchase a home.  But as part of the information gathering process, the approval letter tells your Realtor that you're serious enough about the process and gives you the comfort of knowing you have the financial ability to move forward when you find a home that you like.

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Buying or Selling Real Estate in Alexandria VA? Contact Tamara Inzunza, Associate Broker of McEnearney Associates, Inc. Realtors to list and sell your home, or purchase a new home.  I specialize in Old Town Alexandria, Del Ray, Kingstowne, and Manchester Lakes condos, townhomes, and single-family homes for sale.

Call me at 703-549-9292 x228 or 703-623-8759. Visit my website and Search All Homes For Sale at www.MovingToNova.com/. If you're thinking about selling and would like to know how much your Alexandria VA home is worth, visit www.ConfidentialCMA.com for a complimentary market analysis of your home.  Not selling but curious about the homes for sale in your neighborhood, visit www.MovingToNova.info for FREE Market Snapshot reports and stay informed whenever a home is listed or sold in your neighborhood.

Copyright © 2008 By Tamara Inzunza, All Rights Reserved. All graphics and logos are copyrighted and are the property of Tamara Inzunza.