Step 3: Get Loan Pre-approval
Consumers should begin the mortgage process well before making an offer on a home. By meeting with lenders and looking at loan options, you will find the programs that meet your needs and determine how much debt you can afford.Some purchase forms require buyers to apply for financing within a given time period, in many cases seven to 10 days. By meeting with loan officers in advance and identifying any mortgage problems that have to be addressed, it won’t be necessary to find a lender, check credit and rush into a financing decision in a compressed amount of time.
Pre-approval means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a pre-approval letter that indicates your borrowing power. You can obtain pre-approval letters from more than one lender but keep in mind that each one requires a new credit check, which will show up on future credit reports.
While it is not a final loan commitment, the pre-approval letter may be shown to listing brokers when submitting an offer on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase.
Agents of The Garner Group work regularly with Central Oregon lenders and mortgage brokers. They can recommend financing sources that match the requirements of individual buyers. Some specialize in loans for first-time buyers, for example, and can identify state and federal programs that can be applied. On the other hand, a repeat purchaser may have a large equity sum to apply as a down payment so could wish to shorten the loan duration to lower interest costs.
Some national news reports paint mortgage lenders as predators. Nonsense. Central Oregon lenders, Realtors® and consumers are all on the same side.
Go to Step 4: Look at Homes
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