Choose a Lender and Pre-qualify for Your Loan

This is actually your first step in the process and can be completed a few weeks or a month prior to starting to view prospective properties.   Getting your financial paperwork in order, then visiting a lender for pre-qualification will allow you to have accurate information about how much home you can afford at this time in your life.  Being pre-qualified serves several important purposes:  it requires you to collect the initial round of financial data and documentation that is part of the buying process, it provides direction for you and your agent- you’ll be looking at homes in your price range, and it provides you with a strong bargaining position during the negotiation process.  Sellers and their agents are interested in negotiating with Buyers who are able to make an offer backed up by the ability to get the financing for the home.

It’s important to understand, too, that although you’ve been pre-qualified for a loan, a Lender doesn’t guarantee that you’ll receive approval for a loan on the home of your choice.  The home must pass through the process of an appraisal and you will need to submit additional proof of income, funds for a down-payment and closing costs, and agree to a credit check again just prior to your closing.  Your Lender and Agent will be your source of information on the timing of each of these activities.

If you don’t have a Lender of choice, we have several Lenders with whom we frequently refer our clients.  We’ve chosen them for their solid track records in making home loans to our clients in the area and for their customer service, so ask if you are interested.