Wow, who is approved, who isn't. Who can qualify for a loan and who can't? With the recent reduction of loan products from the market, what's a buyer and seller to do?
For many people they like to shop for the "best" loan. Isn't their a famous line that when banks compete you win? I think that should be, when a loan funds you win. Countless people have been stranded at the table because their lender went out of business. It really doesn't matter how many legal forms, documents, and deeds they have signed because if their ain't no money, there ain't no loan.
A well known mortgage expert has been quoted as saying that equity in the home is not the same as cash in the bank, only cash on the bank is the same as cash in the bank. I took a twist on this and say..
A closed loan is not the same as a funded loan, only a funded loan is the same as a funded loan.
So whats a client an Realtor to do? Here are some suggestions:
- Thou shalt find one lender. Forget shopping for the "best" loan and meet with a mortgage professional that can issue you an approval. Because a quarter lower rate doesn't mean much if the deal never funds
- Bring your documentation to the meeting.Your W2's, tx returns, bank and retirement statements. The days of guessing are over and lenders are looking for quality deals.
- Get pre-approved BEFORE looking for homes.I don't know many Realtors willing to give FREE tours of the local housing market with un-approved buyers. This also applies to sellers as well. If your home has been on the market make sure you still qualify for your next loan.
- If you don't know a professional in the business, get a referral from someone who does.
There are deals to be had and the winners will be the ones who come prepared.
Have a great night!
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