Importance of Mortgage PreApproval
As I mentioned in the email, if you'll be paying for your new home using a mortgage, obtaining a Buyer's Pre-approval is the most important, first step in the homebuying process. It won't take you too much time, but it will greatly facilitate your homebuying experience and ensure you're in the best possible position when YOUR home does come on the market.
The direct benefits of a mortgage pre-approval include:
• Once you have it, it's your ticket to go shopping.
As I mentioned in the email, if you'll be paying for your new home using a mortgage, obtaining a Buyer's Pre-approval is the most important, first step in the homebuying process. It won't take you too much time, but it will greatly facilitate your homebuying experience and ensure you're in the best possible position when YOUR home does come on the market.
The direct benefits of a mortgage pre-approval include:
• Once you have it, it's your ticket to go shopping.
• Finding the best loan - rate, term, type (conventional, VA, VHA, Rural Development, ect)
• Enables you to focus and look at the "Right" homes (price, size, amenities, location)
• Amount you can borrow fluctuates based on current interest rates.
• Uncover credit issues early - time to cure possible problems
• Significantly saves time between contract and closing
• Bargaining power with Seller - price, terms, & timing
• Close quicker - all verifications have been made
• Seller’s now require the buyer to be pre-approved prior to negotiating the contract.
• There is no cost to you to obtain your pre-approval letter (just a few minutes of your time).
Based on my 15 years experience, I HIGHLY recommend using a local (Pensacola area) mortgage broker.
Though it's entirely up to you who you obtain your mortgage through, there is a big difference in working with a Pensacola-area mortgage lender compared to working an out-of-area lender.
NOTE: After you've closed on your new home and you start paying your monthly mortgage, ALL mortgage companies are essentially the same.
The lenders I normally work with answer their cell phones and respond to texts and emails "after hours". When I do work with out-of-town lenders, we MIGHT be able to communicate with them when we need to during the day, but rarely if ever be able to contact them if there's a question or something arises on the weekend or after hours.
Things you should know about using a local lender:
• They can certainly be with a national company, but the actual loan officer should be located in the Pensacola area
• They know our market and specific requirements of providing a loan for a home or condo in our area.
• Permits you and I to speak with them face-to-face vs. a 1-800 number
• Local lenders have an incentive to do well by you if they want me to continue to refer them to my clients (and they may just see you in the grocery store before or after you close).
• Significantly increase the chance of closing on time
I do not refer a lender or any other service provider that I wouldn’t or haven’t used myself. I have been doing business with many of them for many years and they have a proven track record of honesty, professionalism, and good customer service.
I do not receive kick-backs, bonuses, or any other incentives for referring the service providers in my network. I refer them because I trust they will provide you the same, top-quality service as I do.
To determine which is the best lender for you, you should consider:
• What their interest rate is AND what the APR of that rate is.
• The lowest interest rate, by itself is not always the best option (I can explain further if you'd like).
• The APR is an agorithm based on the Interest Rate and what fees the lender is charging to lend you the money.
• Ensure you ask them for a "Good Faith Estimate of Lender Charges".
• The efficiency they have in processing your loan from application through closing.
• The customer service they provide from application through closing.
• How well the mortgage loan office communicates with you, me, and the title (closing) company is imperative to ensuring your transaction goes smoothly AND closes on time.
CLICK HERE to view an example of documents you’ll need to apply for a mortgage. Depending on the particular lender, they may need some additional documentation.
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