The most important step in the homebuying process is choosing your mortgage lender—and the best time to do that is when you are getting pre-approved. Being organized when starting the home-buying process means having a loan pre-approval completed, which can empower a buyer and make the home-buying & negotiating process easier.
What is a Pre-Approval?
Think of a pre-approval as your “green light” from a mortgage lender. The lender assesses your income, credit score, and debt to determine how much you can afford to borrow, as indicated in a letter. This letter is what sellers want to see before they take an offer for consideration.
The Importance of Choosing a Mortgage Lender Early
Some borrowers think they can wait to choose a lender until after they find the perfect house. The problem with this is that once you’re under contract, you usually have only a few weeks to close. This means you don’t have time to shop for the right lender, and each day that passes makes it that much harder to meet your contract’s deadlines. This can then result in increased fees, less negotiating power, and unnecessary stress.
When getting pre-approved, it’s prudent to talk to a few lenders and ask about their interest rates, fees, and how fast they can close. Checking online reviews is a great starting point. Once you have identified who you feel comfortable working with, it is important to start actively providing all of the necessary information requested from you.
The more complicated your financial situation is, the more important it is to complete a thorough pre-approval in advance. Choose your mortgage lender during the pre-approval process so that when you find the right house, you’re ready to move forward with confidence.
If you’re just starting the homebuying process and are looking to learn more, please give us a call at (760) 930-0569. Our Mortgage Loan Originators are here to walk you through pre-approval, answer your questions, and help you feel confident every step of the way.
