The best way to find your dream home is by getting pre-approved. The process has changed drastically, and it’s not just about being able to get a loan from an institution that will provide funds for anyone with good credit – there are other requirements now such as adequate income or affordable payments on their property value.
Pre-qualified and pre-approved are two different things. Pre-qualified means that you applied for a mortgage, filled out all the necessary paperwork including getting your credit report verified as well as meeting other criteria such as assets or income. However, being ‘pre-approved’ simply means knowing exactly what maximum loan amount can be offered before finalizing anything.
When competing with other buyers who have been pre-approved, a qualified letter is not enough to seal the deal. It’s important that you know how much house your credit can afford and what kind of loan will work best for it before applying so there isn’t an issue later down the road when trying to buy again or having trouble refinancing if necessary due to lack of lender willingness.
Getting a Reputable Lender
Be sure to get pre-approved by a reputable lender, which include banks, mortgage brokers, credit unions, savings and loan associations or online lenders.
It’s best if you avoid any companies missing important paperwork or having difficulty finding information about interest rates, points costs etc., because this could lead into problems down the line when buying property.
We have resources to help you find the right lender for your needs.