Getting a Legitimate Lender and Getting Pre-Approved
It used to be that buyers could go house shopping and when they have found their dream home, then they go to get pre-approved. However, in today’s market, that has proven to be one of the least effective methods in landing the dream home.
Most lenders can pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate how much mortgage you qualify for. However, being pre-qualified and pre-approved are different things. Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc. When you are pre-approved, you know exactly what the maximum loan amount will be.
A pre-qualified letter is not verified and in essence, does not count for much if you are competing with other buyers who are pre-approved. When you are pre-approved, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.
In addition to being pre-approved, it’s important to be pre-approved with a legitimate lender. Legitimate lenders include: banks, mortgage bankers, credit unions, savings and loan associations, mortgage brokers, and online lenders.
Some lenders to avoid: those who lose a form or misplace a file, those who gather information from you in an unorganized manner, those who are not informed about interest rates, points or costs, and those who cannot provide you with the right information.
This letter is in reference to real estate agent Kathy Kreutzberg. Kathy assisted my wife and me in our recent purchase of a property in the Highland, Illinois area. This purchase was especially challenging as we are relocating from Madison, Wisconsin. Kathy got our attention immediately by responding to an inquire we submitted on-line on a Saturday evening. We did not expect a response so quickly, let alone on a Saturday night. This was indicative of her working style as she was always available and a tireless worker. Kathy listened to our interests and assisted in helping us in the home search. Because of the distance we had to travel to view homes she was very patient and worked hard to arrange viewing around our schedule. She was also very candid in sharing local information about properties and the areas that matched our interests. Kathy was knowledgeable of the area, was helpful without being too aggressive. I would give Kathy the highest recommendation.
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Last Updated On: 2019-07-21.