Step 2: Getting Pre-Approved

Wait, what was Step 1?

Answer: Working with a trusted real estate agent who can give you the tools to succeed! 

And you found me! So Step 1 is to click CONTACT so we can connect:

CONTACT

Why do I need to speak to a lender now? I'm not ready to look at houses

A lot of first-time home-buyers think that going to look for houses is one of the first steps in the home-buying process. This simply isn’t how it works. In today’s market, when a house becomes available, it gets snatched up pretty quickly. Also, interest rates have been climbing since the summer (2022) and that SIGNIFICANTLY affects what you can qualify for. You want to be sure you speak with a lender EARLY so you know exactly what price points you should be looking at.

There are many reasons why you may not qualify for the loan required to buy the house you want

  • Your income may be too low
  • Your credit score may be too low
  • too little credit history
  • Your debt-to-income ratio (DTI) may be too high
  • There may be a debt you didn't know you had
  • not enough down payment
  • issues with the documents you need to provide

If a home receives multiple offers, you can guarantee any offers from Buyers who aren’t pre-qualified will not be considered. This is also why most real estate agents (myself included) won’t even show you a house until you are pre-approved. Like you, my time is valuable, and there is no point in going to look at a house if there’s no chance of getting it.

What do you want in a lender?

The importance of a quality lender should not be underestimated.  A good lender does more than just pull your credit history. They will review your financial history in an attempt to pre-qualify you. And if your loan officer find issues that will keep you from getting a loan now, they will work with you (sometimes for months!) to help fix them.  Some lenders even offer programs (for a fee) that can significantly increase your credit  in just a few months.

It can be tempting to go with the “convenience” of an online mega-lender like a national bank. But these lenders can be problematic. When you have questions or issues, it is hard to reach a real person, and it’s almost never the same one if you DO get to speak to someone. A local lender will be available when you need them to be. They will be in the same time zone so deadlines won’t be mixed up. And when you have ME put in an offer on a home for you, I will have my lender partner call the Seller to talk you up about how qualified you indeed are.

I can recommend great local lenders

It’s not a bad idea to speak to more than one lender. While it is true that they are somewhat regulated as to the mortgage rates they can offer, different companies can have different products. There may be a program that suits your needs the better than others. Plus they need to reliable, knowledgeable, friendly and local. Check with me so I can connect you to a lender or two who I think would vibe well with you and your needs.

If you need more convincing about talking to lenders, click here