Choosing a skilled and experienced lender is important when it comes to choosing the right loan program when you are buying a home. But it’s even more important when it comes to managing your mortgage over time.
A professional consultant won’t just provide a loan, they will help you choose the one most beneficial to you and your long-term financial goals. Then, they will help you manage that debt over time. Most loan officers do not provide this kind of personalized, long-term service to their clients.
My job is just beginning when your first loan closes. I will monitor rates on your behalf and stay in touch with you to make sure we remain on target with your financial goals. Your goals will often change over time, so I stay in touch with all my clients to make sure the loan you have is still the right one for your situation.
Seeking Pre-Approval: What is the difference between pre-qualification and pre-approval?
Pre-qualification is the starting point in your search for mortgage financing. A quick snapshot is taken which includes income, existing debt, savings, length of employment, etc. In most cases, lenders don’t bother checking any of your information for accuracy in order to issue a pre-qualification. A pre-qualification may be in writing, and it might be enough to get a Realtor to show you houses, but the lender who issues you a pre-qualification is under no obligation to make a loan to you. A pre-qualification has so many loopholes and disclaimers that you could drive an entire housing development through one.
A Pre-approval is a written statement – backed by extensive documentation you have provided — that shows you have the support of a lender who is willing to finance you. It means your loan application has been reviewed by an underwriter. Based on your income, credit, debt ratio and savings, the underwriter provides the dollar amount you are eligible to borrow. Now you can shop around for houses that fit into that loan amount category.
The great thing about the pre-approval: It gives you the leverage to shop as a cash buyer. With a pre-approval in hand, you now have the power to negotiate. The seller will take your offer much more seriously knowing you are already approved by a lender. And in a tight “seller’s market”, where there are more buyers than homes for sale, a pre-approval can be the difference between you getting the home you wanted or not. In a “buyer’s market” where there are more homes for sale than serious buyers, a full credit approval could save you up to 15% on the purchase price of your home.
What will my monthly payments be?
The amount of your monthly payment depends on what loan program you choose. Once you have been fully pre-approved with all of your required documents (see “documents needed” on the website) , we will have a “brainstorm meeting” where we will go over your monthly payment goal, so you will have a specific goal for the sales price range you want to be looking in.
Once you have an offer accepted on a house, we will meet for a “Loan Option” appointment, where we go over rate choices, break-even point etc. This helps you narrow your choices and compares different loan programs that meet both your current and long-term goals. You will be able to select a program you feel comfortable with.
What does it cost to get pre-approved?
Pre-approval is absolutely free. It is the best way for you to find out how much home you really qualify for, so you can make informed decisions about whether now is the right time for you to buy. Even if you decide to wait before you buy, getting an approval done lets you know exactly how you stand, and we will show you exactly what you would need to do to qualify for the home that meets your needs.
Give us a call (360-676-9600) to begin your pre-approval process. We also have a network of pre-screened Real Estate professionals that we have verified as ready to provide you with excellent service.