One of the first steps in the home buying process is getting pre-approved with a lender. Many buyers want to wait until after they have found a home to meet with a lender. Here is why it is important to get pre-approved before looking at properties.
You go out with an agent and find your dream home! You are so excited, ready to pick out new paint colors, figuring out exactly where to put your dining room table and that new flat screen. You are ready to put in an offer of $300,000. Before putting in your offer, you go to meet with a lender who tells you, you qualify for a mortgage up to $250,000. You are absolutely crushed. Now you are back to looking at homes and no matter what, you keep dreaming of that first home. As agents, we don’t want you to fall in love with a home you can’t afford.
With any offer you submit, a listing agent will want to see a copy of a pre-approval letter. A pre-approval letter simply states the amount you have been qualified to purchase with and the conditions required by the lender to be fully approved.
We also strongly recommend using a local lender. When you call a big company, you get a recording, press 1 for this option. With local lenders, you typically have their cell phone, you meet with them in person and put a face to the name, they know you and know your transaction. A local lender will know exactly what types of Federal or State programs are available to fit your needs. Do you need help connecting with a local lender in our area? We’d be happy to point you in the right direction.