Often, buyers will ask me at what point in the buying process they need to sit down with a lender. Furthermore, many times buyers are apprehensive about speaking with a lender as the will have to disclose all of their financial history including income, debts and their credit scores. However, it is to the buyer's benefit to get a lender involved in the home buying process as early as possible…and by early, I mean as soon as you start considering purchasing a home.
By sitting down with a lender you can get pre qualified for a loan. The prequalification process consists of answering the lenders questions about your income, debts and credit scores. Once the lender has this information they can estimate not only how much house you can afford but, how much your monthly payments will be at different price points. As a buyer this information is very important as it will dictate what properties you look at and ensure that you are not wasting time looking at properties that you either cannot afford or, are far below your purchasing power.
Once you have been prequalified for a loan the lender will ask you to provide documentation of your income and debts. This will typically include bank statements, tax returns and a full credit report. Once this is done the lender can issue a Pre Approval Letter that assures your ability to secure a loan. When you make an offer on a home, you can attach a copy of the pre approval letter to demonstrate to the seller that you are a well qualified buyer who will be able to secure a loan to purchase their property. Without a Pre Approval Letter, the seller will likely be apprehensive to accept your offer as they will have to take their home off the market while you start the loan process. If you fail to secure a loan, the seller will have lost valuable time trying to sell their home and will have to start the process over. Furthermore, if you end up in a situation where multiple buyers are making an offer on the property you want, a Pre Approval Letter will make your offer more attractive to the seller.
As always, if you have any questions, or would like a list of top notch Summit County Lenders please feel free to contact me anytime at the information below. I am always happy to discuss your Summit County Real Estate goals.
All the best,
Tyler MacGuire
Broker Associate
Omni Real Estate Company
Omni Real Estate Company
Cell: 970-409-7779
Email: tylermacguire@hotmail.com
"Your Guide to Summit County Real Estate"
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