Monday, August 12, 2013

getting pre-approved

I'm one of those agents who won't let a buyer in my car unless they are pre-approved. This rule might seem self-serving, but it's not. In fact, I think it's providing clients with the best kind of service. Don't get me wrong, I love looking at houses, but we all know how frustrating it can be to fall in love with a place you just can't afford. Saving my clients from that experience is key to their overall happiness with this process.

The estate I would like to buy

The cottage I can afford to buy

That's why the best place to start when buying a home is to find out how much house you can afford.

Here are the basic steps involved in getting pre-approved by a lender:

no. 1 Meet in-person with a mortgage representative.

no. 2 Complete a loan application. You will need to provide all the particulars regarding your income, assets, and expenses, as well as the estimated purchase price and down-payment.

no. 3 Provide the lender with documents confirming your financial standing, including your most recent bank statement, W-2 form, and employment pay stubs, as well as proof of stock ownership, mutual funds, IRAs, and other investments.

no. 4 The loan agent/officer/broker will spend a few days confirming your financials and employment, which includes no. 5.

no. 5 Your application will undergo "underwriting," which is an internal evaluation by the lender to weigh the risks of making a loan in your situation.

no. 6 Once you are pre-approved for a loan, the lender will provide you with a "good faith estimate", the lender's official estimate of ALL the fees and costs associated with the loan.

If you simply want an estimate of the amount you might be qualified for, consider getting pre-qualified. This process can usually be handled over the phone and typically only takes a few minutes. Keep in mind, however, that most sellers and their agents are looking for buyers who are pre-approved.

While there are many well qualified mortgage brokers and lenders in the greater Seattle area the professional I go to, and refer whenever needed is Eric Freemen of Lakeview Mortgage. Eric has proven to be of exceptional ethics and follow-through with connections to many local and national lenders.

Until next time,

la chasse au bonheur

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