The Pre-Approval Process

In our last 3 Insider Mortgage Tips we discussed the
3 components lenders look at in order to make a determination
of your ability to obtain a mortgage.

In this Insider Mortgage Secrets Tip, we will discuss the
process of getting approved for a loan BEFORE you start
shopping for your new home.

Do You Have A Thousand Dollars To Simply Throw Away?

I know this may sound like a very silly question but that
is exactly what happens every day to unsuspecting buyers
who do not get pre-approved for a loan BEFORE they go
house hunting.

Let me explain with a typical scenario...

You decide it is time to move so you find a realtor and
start looking for a home. After some house hunting you
find the perfect home and make an offer which is accepted.

Now you must meet with a lender to obtain a mortgage for
this home. When you apply for your loan the lender will
request a check for the appraisal and credit report. It is
also a very good idea to have your home inspected. This is
another fee that you will be required to pay for when the
service is rendered.

So, approximately 7 to 10 days after your contract was
accepted by the seller you will be required to spend this
$1000.00 or more.

Whether Your Loan Is Approved Or Denied These Funds Are
Not Refunded!

THE RIGHT WAY...

The proper procedure is to meet with a lender and get your
loan pre-approved BEFORE you go house hunting. Aside from
avoiding the unpleasant situation just described above there are
other benefits to having your loan in place as your first
step in the process.

In this pre-approval meeting we can establish what your
comfort level is for monthly payments as well as the
amount of funds you can comfortably use for the
transaction and we can then use these figures to recommend the
appropriate program.

In a seller's market where there are many more buyers in
the market than there are homes for sale this can give you
a much needed edge. When the seller knows your loan is
already pre-approved your contract has a better chance of
being accepted than the one from the buyer who has not yet
met with the lender and may or may not be able to get a
loan.

If you would like to get pre-approved and have your money
waiting for you BEFORE you go house hunting please call me
at 916-960-5900 for a No-Obligation Consultation.

In our next issue we will cover the appraisal and what your
home is worth.