Step 2 - Getting Pre-Approved For a Loan

 

While Step 1 was to find a qualified buyer's agent, getting pre-approved would be step 1a, it is that important.

Many buyers who have a good job history and excellent credit assume financing won't be an issue and often don't take this step as serious as they should.

These folks opt to start looking for homes and only get an approval after finding a home they love---the wrong way to go about the process!

In terms of qualifications, you may indeed walk on water, but it is still critical to go through the pre-approval process for many reasons.

 

WHY GET PRE-APPROVED

1. Find Out How Much You Qualify For

2. Sellers Won't Accept An Offer Without A Pre-approval

3. There May Be Mistakes On Your Credit Report - Will Take Time To Fix

4. Learn About Different Loan Options

5. Establish A Relationship With A Mortgage Profession - A Valuable Member Of Your Team

The pre-approval process is easy and can be initiated by a brief phone conversation with a loan officer. Save yourself a lot of aggravation and get it done early in the process.

 

WHERE TO GET A LOAN?

 

 

There are basically 3 main places to get a loan:

1. Lender

2. Bank

3. Mortgage Broker

Is one better than another? It depends who you ask. Some people prefer a lender or broker who can shop the market and find you the best rate and terms. Others are more comfortable with a traditional bank.

I am personally a fan of using a company with a vested interest in the local community as I feel they are more likely to have incentive to make their customers happy.

If and when problems arise, an internet based company or one without a local office, in my experience, is less responsive.

At the end of the day, the loan is an important part of the process so find someone that you feel will do a great job.

Your agent or friends should be able to refer to you to a qualified loan officer.