Pre-Approval
THE SMART APPROACH TO HOME SHOPPING
The prudent approach to finding the righthome is to get pre-approved, NOT pre-qualified, at the beginning of the process. Pre-approved means that all of the key factors pertaining to the loan have been verified by your Loan Officer. Pre-qualified means that a borrower has filled out an application form and the data looks good. But it has not been verified. Experience has taught us that the data could be wrong and that being pre-qualified does not mean nearly as much to the seller.
It also prevents the buyer from wasting time looking at properties for which they can not qualify. We would all like to have a two million dollar home, but few of us can afford one.
NEGOTIATE FOR YOUR HOME FROM A POWER POSITION
Once you know what kind of a loan you want, and approximately what the payments will be, you can start shopping with the confidence that you know you can make the pruchase. When we find you just the right home, your offer is much more powerful because the seller will know that you are fully qualified for the financing. Offers from buyers who are pre-approved carry much more weight than those from buyers who are not. You will be in a much stronger negotiating position. When you come prepared you usually win!
WHAT LENDERS ARE LOOKING FOR
Lenders look at several key factors when considering a loan. The condition and value of the property is the first. Others involve the borrower: credit score, bill-paying history, income and the ratio of existing debts to income are all taken into consideration when an underwriter reviews a loan package.
We review all of these factors for the borrower BEFORE we start looking at properties. We evaluate each buyer's situation and present the best picture possible to the lender.
When our client signs an offer for a property they are in the best possible position to acquire that property. They are pre-approved for the financing and in the strongest negotiating position.
