The Buying Process Series - Lender & Pre-Approval!
Updated: Nov 4, 2020
Buying a home can be challenging for a first-timer. After all, there are so many steps, tasks, and requirements, and you may be anxious about making an expensive mistake. I want to walk you through the process to help you better understand each aspect of the #transaction and calm any worries/nerves you may have about buying a home!
Confirm Preferred Lender of Choice
By far the smartest thing you can do is shop around for a #mortgage lender. Talk to #lenders at national #banks, regional banks, credit unions, and others. Ask your #realestate professional for recommendations. (I have some for you!) And be sure to check out online reviews, as they can tell you a great deal about each lender's #reliability, customer service, and other qualities.
Obtain Full Pre-Approval Letter
#Preapproval proves a lender is willing to loan you a certain amount of money and signals to home #sellers that they can rely on your offer if they accept it. It also provides an idea of what your mortgage payment and #interestrate will be if you borrow that amount. (Here's a handout that explains more.)
When shopping for lenders, compare preapproval options. Some lenders allow you to upload digital documents and can provide approval online in minutes, while others may require a phone call or visit to a local branch office to deliver #documents in person. As you compare lenders, consider their preapproval methods and whether one fits your schedule and documentation preferences better than another.
And if you’re facing preapproval barriers, like a lower #creditscore or inconsistent #income, ask lenders before applying if they’re willing to work around them. Some lenders will help you find errors on your application or take into account nontraditional #credit data like rent payments.