Do I Need To Get Pre-Approved for a Loan Before Shopping for a Home
Yes You should be pre-approved first. It is a big mistake shopping for a home without being pre-approved unless you are paying cash. Lets say you are out shopp for a home and think you can afford $250,000, you spend 8 weeks shopping have looked at 74 homesand find one yoou love. Then you write an offer it is accepted but you can’t get the loan. You have wasted your time along with the sellers and both agents to find out you only qualify for a $200,000 loan.
There are some other reasons to get pre-approved, Lately with the HVCC rules it takes longer to get an appraisal. If you are going FHA, some lenders are backed up on those loans.It could take some time to place your loan, why would you want to put your Broker at a disadvantage?
Your offer will look better. Offers submitted with a pre-approval letter tell the seller that you are serious, if you are competing with another buyer you might come out ahead.
To get pre-approved- you need to fill out an application and provide some documents to your mortgage broker which could include:
Bank statements
W-2′s
Tax returns
paystubs
Loan application
Verification of employment
Verification of deposit
many more
You will also need time to shop for a broker. You probably shouldn’t pick the first broker that comes along. Compare a few of them based on rates and fees, did they respond promptly? Why haven’t you said anything about applying at my bank? I am biased I am a mortgage broker so I think we are the best. A bank is stuck with their products, A mortgage broker is not, we can shop around for a better rate and usually get a better rate. If the bank denies you a loan you have to start all over again unless you use a mortgage broker then it is almost as simple as repackaging your file and submitting it to another lender.
David Chamberlain 727-239-2188
david@floridadreamloans.com
I am a mortgage broker located in Florida, I like to write and answer questions about real estate. I am available by email, phone, blog, twitter or Trulia
Answer by David Chamberlain: Alexandra, You are not following the guidelines. Maybe you should take some time out and read them. Don't get mad about it, just follow the rules and get over yourself.
Answer by David Chamberlain: Good arguments but to many footnotes makes it hard to read. The conclusion seems to lean on the side of a retail sales approach but real estate isn't any where near a retail transaction, there are legal implications. The salesperson of an hd tv doesn't have any legal responsabilities to the buyer.
Answer by David Chamberlain: Unless the home that is bought is the same price that a person was considering with a fixed rate, there will not be any savings realized. An ARM may change the qualifying ratios and someone would normally get more house for the money instead of any savings and then might not be able to qualify for the refinance at the higher rate […]
Answer by David Chamberlain: I will answer this part of you question: If in a few years I decide I want to keep the home can I change the loan to conventional to get the locked rate? A lot of people today are finding out that they are stuck with their arm because property values have declined or credit has tightened. You might not be able to refinance due to […]
Answer by David Chamberlain: Angelia, you could have just copied and pasted your answer from NAR Q&A, that will save you some time. http://www.realtor.org/archives/feat2200702 4. “Someone else will do it for less.” You: Yes, you can probably always find someone who will take your listing for less money. However, the amount of money you pay is directly re […]
Answer by David Chamberlain: Good Alan, now consumers know who not to do business with. If deceit is needed for a simple question imagine how she conducts business.
Answer by David Chamberlain: We have some new agents on this thread, that don't know the laws, there is no such thing as standard rate and full commision. I have a question for all agents that have a broker split of 50%, why would you discount your rate to your broker? The only agents that should have a 50% split are new ones and that should be because […]
Answer by David Chamberlain: Get an attorney you are not qualified to do this yourself. What is the interest rate? How much is going to the down payment? What is the price? Can you justify the price? Will you be able to get a loan when the option is up? What happens if you don't buy it? Who is responsable for repairs till you get a loan? How much is ins […]
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